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HomeMy WebLinkAboutCity Council - 09/20/1983 EDEN PRAIRIE • CITY COUNCIL AGENDA TL AY, SEPTEMBER 20, 1983 7:30 PM, CITY HALL COUNCIL MEMBERS: Mayor Wolfgang Penzel, Richard Anderson, George Bentley, Paul Redpath and George Tangen CITY COUNCIL STAFF: City Manager Carl J. Jullie; City Attorney Roger Pauly; Finance Director John Frane; Planning Director Chris Enger; Director of Community Services Robert Lambert; Director of Public Works Eugene A. Dietz, and Recording Secretary Karen Michael • INVOCATION: Councilman Paul Redpath PLEDGE OF ALLEGIANCE ROLL CALL I. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS • II. MINUTES • A. Regular City Council Meeting held Tuesday, September 6, 1983 Page 1987 B. Special City Council Meeting held Tuesday, September 13, 1983 Page 1996 Iii. CONSENT CALENDAR A. Request to accept bids for mechanical and electrical work at Cummins- Page 1999 Grill Homestead B. Request to prepare plans and specifications and secure quotes for Page 2000 exterior restoration work on the Cummins-Grill Homestead C. 2nd Reading of Ordinance No. 37-83. amending City Code Section 11.70, Page 2001 Subd. 2., 6., to redefine directional signs for churches and to adopt a definition for directional signs for schools and publicly owned land or buildings D. Clerk's License List Page 2005 E. Final Plat approval for Creekview Estates 2nd Addition (Resolution No. Page 2006 83-222) F. Final approval for Municipal Industrial Development Bonds in the amount Page 2008 -a-3100,000.00 for Cotton-Hagen (Resolution No. 83-230) G. Change Order Number 1, Lorence 1st and 2nd Addition Improvements, Page 2009 f.CC. 52-032 H. 2nd Reading of Ordinance No. 38-83, Zoning from R1-13.5 to R1-9.5 for Page 2010 Ridgewood West 2nd/Westover by Centex Corporation, Approval of Developer's Agreement, Adoption of Resolution No. 83-217 Approving Summary of Ordinance No. 38-83, and Ordering the Publication of Said Summary of Ridgewood West 2nd/Westover. 83 Lots at Cumberland Road and Mitchell Road. City Council Agenda - 2 - Tues.,September 20, 1983 I. 2nd Reading of Ordinance No. 43-83, Zoning from Rural to Highway Commercial Page 2011 and Adoption of Resolution No. 83-218, Approving Site Plan for Burger King Restaurant. County Road 4 and Highway 5. J. 2nd Reading of Ordinance No. 42-83, Zoning Amendment to I-2 for E. A. Sween, Approval of Developer's Agreement Amendment, and Adoption of Resolution Page 2016 No. B3-219, Approving Summary of Ordinance No. 43-B3 and Ordering Publication of Said Summary. South of State Highway 5 at Fuller Road. K. 2nd Reading of Ordinance No. 40-83, Zoning from Rural to Commercial Regional Service and Adoption of Resolution No. 83-220, Approving Site Plan for Page 2017 Menard's Shopping Center. East of existing Menard's Building; adjacent to Plaza Drive. • L. Preliminary Plat approval for TARGET (Resolution No. 83-224) Page 2019 M. Round Lake Park Irrigation Extension Page 2024 IV. PUBLIC HEARINGS A. ANDERSON LAKES PARKWAY FEASIBILITY REPORT, I.C. 52-032 (Resolution No. Page 202B 83-223) Continued from July 19, 1983. B. REQUEST FROM SCOTT AND STEPHANIE FELDMANN for Council review of Board of Page 1919 Appeals & Adjustments decision on Variance No. 83-23 (Continued from September 6, 1983) ( C. PRESERVE MANOR HOMES by Quality Homes. Request for Comprehensive Guide Page 2029 Plan Amendment from Church to Medium Density Residential, Planned Unit Development Amendment and District Review, Zoning District Change from Rural to RM 2.5, and Preliminary Plat for four B-plex condominium buildings, 32 units, on 4.0 acres. Location: Northeast quadrant of Center Way and Anderson Lakes Parkway. (Resolution No. 83-225 - Guide Plan Amendment; Resolution No. B3-226 - PUD Amendment; Ordinance No. 44-83 - Zoning; and Resolution No. 83-227 - Preliminary Plat) D. MONTESSORI SCHOOL by Ryan Development/Hustad Development. Request for Page 2038 Zoning from Regional Commercial to Regional Commercial Service and Preliminary Plat of 0.75 acre for day care facility. Location: County Road 60 and Market Place Drive. (Ordinance No. 45-83 - Zoning; and Resolution No. 83-228 - Preliminary Plat) E. 1983 SPECIAL ASSESSMENT HEARING (Resolution No. 83-208) F. CABLE T.V. RATE CHANGE (Res.No.83-231 - Accepting Findings of Southwest Page 2044 Suburban Cable Commission; Ord. No.46-83 - Rate Changes)Page 2045 V. PAYMENT OF CLAIMS NOS. 9650 - 9860 VI. REPORTS OF ADVISORY COMMISSIONS VII. PETITIONS, REQUESTS & COMMUNICATIONS • A. Request from NSP for conversion of street lights to high pressure sodium Page 2051 City Council Agenda - 3 - Tues.,September 20, 1983 VIII. ORDINANCES & RESDLUTIDNS A. 2nd Reading of Ordinance No. 35-83, Zoning from Rural to R1-13.5 for High Page 1897 Trail Estates 2nd Addition for Countryside Investments, Inc., Approval oi•Developer's Agreement for High Trail Estates 2nd Addition, any Adoption of Resolution No. 83-207, Approving Summary of Ordinance No. 35-83, and Ordering the Publication of Said Summary of High Trail Estates 2nd Addition. 21 Lots at 6451 Duck Lake Road. (Continued from 9/6/83) B. Final Plat approval for High Trail Estates 2nd Addition (Resolution No. Page 19D6 83-212) Continued from 9/6/83 C. 2nd Reading of Drdinance No. 41-83, Zoning from Rural to R1-9.5 for Timber Page 2053 Creek by B-T Land, Approval of Developer's Agreement for Timber Creek, and Adoption of Resolution No. 83-222, Approving Summary of Ordinance No. 41-83, and Ordering Publication of Said Summary for Timber Creek. 158 Lots at County Road 4 and Duck Lake Trail. IX. REPORTS OF OFFICERS, BDARDS & CDMMISSIONS A. Reports of Council Members B. Report of City Manager C. Report of City Attorney ( X. NEW BUSINESS XI. ADJOURNMENT. . UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL TUESDAY, SEPTEMBER 6, 19B3 7:30 PM, CITY HALL COUNCIL MEMBERS: Mayor Wolfgang H, Penzel, Richard Anderson, Georcc Bentley, Paul Redpath and George Tangen CITY COUNCIL STAFF: City Manager Carl J. Jullie, City Attorney Roger Pauly, Finance Director John D. Frane, Planning Director Chris Enger, Director of Public Works Eugene A. Dietz and Recording Secretary Karen Michael INVOCATION: Mayor Wolfgang H. Penzel PLEDGE OF ALLEGIANCE ROLL CALL: Councilman George Bentley was absent I. APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS Item III. B. 2nd Reading of Ordinance No. 35-B3, zoning from Rural to R1-13.5 for High Trails Estates 2nd Addition for Countryside Investments. Inc.. approval of Developer's Agreement for High Trails Estates 2nd Addition, and adoption of ( Resolution No. 83-207, approvina summary of'Ordinance Na. 35-83, and or eying the publication of said summary of High Trails Estates 2nd Addition, and item III. C. Final Plat approval for High Trails Estates 2nd Addition (Resolution No. 83-212) were removed from the Agenda and continued for two weeks. MOTION: Redpath moved, seconded by Tangen, to approve the Agenda and Other Items of Business as amended (deletions as noted) and published. Motion carried unanimously. II. MINUTES A. Minutes of the City Council Meeting held Tuesday, August 2, 19B3 MOTION: Anderson moved, seconded by Tangen, to approve the Minutes of the City Council Meeting held Tuesday, August 2, 19B3, as published. Motion carried unanimously, B. Minutes of the City Council Meeting held Tuesday, August 16, 19B3 Page 4, para. 2, line 6: change "deleated" to "deleted" Page 5, para. 9, last line: change "what had" to "that might have" Page 6. para. 11, line 2: change "permissable" to "permissible" MOTION: Redpath moved, seconded by Anderson, to approve the Minutes of the City Council Meeting held Tuesday, August 16, 19B3, as amended and published. Motion carried unanimously, �ac� City Council Minutes -2- September 6, 1983 III. CONSENT CALENDAR A. Change Order Number 1, Lavonne Industrial Park, I.C. 52-048 B. 2nd Reading of Ordinance No. 35-83, zoning from Rural to R1-13.5 for Hiah Trails Estates 2nd Addition for Countryside Investments, Inc., approval of Developer's Agreement for High Trails Estates 2nd Addition, and adoption of Resolution No. 83-207, approving summary of Ordinance No. 35-83, and ordering the publication of said summary of High Trails Estates 2nd Addition. 21 lots at 6451 Duck Lake Road. Removed from the Agenda and continued for two weeks. C. Final Plat approval for High Trails Estates 2nd Addition (Resolution No. 83-212). Removed from the Agenda and continued for two weeks, D. Final Plat approval for Hidden Glen (Resolution No. 83-213) E. 2nd Reading of Ordinance No, 39-83, zoning from Rural to Office for 'CRC by Ryan Construction Company, and approval of Resolution No. 83-206, approving development. 21,000 square feet of office on 1.5 acres at City West Parkway in City West Planned Unit Development. F. Approval of Amendment to Developer's Agreement for Shady Oak 5th Addition by MN-TX G. Clerk's License List H. Final approval for Municipal Industrial Development Bonds in the amount of S3,950,000.00 for Shady View Business Center (Resolution No. 83-214) MOTION: Redpath moved, seconded by Tangen, to approve items A, D - H on the Consent Calendar. Motion carried unanimously, IV. PUBLIC HEARINGS A. REQUEST FROM SCOTT AND STEPHANIE FELDMANN for Council review of Board of Appeals & Adjustments decision on Variance No. 83-23 City Manager Jullie stated notice of this Public Hearing had been published and property owners within the affected area had been informed. Jullie re- viewed action taken by the Board of Appeals & Adjustments and noted the provision in the City Code from which the Feldmann's appeal was taken, Scott Feldmann, 18865 Pheasant Circle, stated the reasons for the request; he also reviewed the objections voiced by the Cronks and addressed the issues raised by those objections. David Cronk, 18895 Pheasant Circle, said he felt the Ordinance was a good one and spoke to the reasons the request should be denied. Penzel noted that because there are 55 other cases in Hidden Ponds where the driveway return is closer than ten feet to the lot line and this condition exists because of a misinterpretation by Staff, does not mean that this practice should be continued. He asked City Attorney Pauly about the issue that a precedent may have been set. City Council Minutes -3- September 6, 1983 Pauly said it is fairly clear that the past practice or history of violations does not compel a result that the violations can continue. The City Council does not have to take that as a binding precedent. A history of non observance of certain provisions doesn't compel that a variance be granted. Redpath asked if the land exchange which had been referred to in the materials distributed to the Council had been explored further. Feldmann said Cronks had submitted a proposal to them in July which the Feldmanns had countered and which had finally been rejected by the Cronks on Monday. Feldmann noted the proposal had been based on the fair market value of the 350 square feet of land which the Cronks would gain, the Cronks would have assummed the cost for resurveying the land and replatting and the fees incurred. Cronk said the survey fees were going to be $800 - $1000 and they felt this should be a shared cost. Feldmann said the fair market value for the property would be in the vicinity of $400. Redpath said he would like to see the parties go back and work on a solution to this problem. Fred Koppelman, 18890 Deerfield Trail, said his backyard backs up to the backyards of Cronk and Feldmann, He said he has tried to'determine who would be the least inconvenienced by the variance request, He said he thinks that the driveway should be left as it is and the variance should be granted. Gary Thoreson, 18920 Pheasant Circle, said he felt that the layout of the subdivision does not meet the intent of the Ordinance. He said if the vari- ance is not issued it will not be fair to those who have the remaining unbuilt lots; the other residents of the subdivision have had the opportunity to place their driveways where they have desired. Gary Nelson, 18129 Valley View Road, builder, said he was unaware of the Ordinance and had spoken with a black-topper who has done many of the drive- ways in the area and he, too, was unaware of any such ordinance either in Eden Prairie or any of the other suburbs in which he works, He said this is not an appropriate ordinance when applied to cul-de-sacs, Cronk said he did not feel is was such a great hardship to comply with this Ordinance; he again stated he thought the Ordinance was a good one. Penzel asked what might be the conditions under which the variance could be granted, Pauly said, according to the statute, the purpose is to provide variances from the literal provisions of an ordinance in instances where their strict enforcement would create undue hardship because of circum- stances unique to individual property under consideration and to grant variances when it is demonstrated that such action would be in keeping with the spirit and intent of the ordinance. He noted that undue hardship as used with the granting of a variance means that the property in question cannot be put to a reasonable use if used under circumstances allowed by the official controls. City Council Minutes -4- September 6, 1983 Redpath again stated he would like to see the two property owners attempt to settle this problem. Tangen said he would find it difficult to approve the variance because he does not feel undue hardship has been demonstrated. He said he felt granting of variances should be limited. Tangen noted it might be proper to continue this matter and allow the residents time to work things out. Anderson said he lives on a cul-de- sac and understands the problems they pose. He said he concurs with Tangen and Redpath and would like to see the neighbors work out their problem. Penzel concurred. Feldmann said since it appeared that the variance would not be granted, he wished to have the matter continued. MOTION: Redpath moved,seconded by Tangen, to continue the Public Hearing to September 20, 1983, to allow the parties additional time to negotiate. Motion carried unanimously. B. BURGER KING RESTAURANT. Request for zoning district change from Community Commercial to Highway Commercial for a restaurant. Location: southeast quadrant of State Highway #5 and County Road #4. (Ordinance No. 43-83 - zoning district change) City Manager Jullie said notice of this Public Hearing had been published and property owners within the project vicinity had been notified. Dave Sellergren, attorney with Larkin, Hoffman, Daly & Lindgren, spoke to the proposal. Also present were Dennis Trissler, Burger King project development engineer, Jim Benshoof, traffic consultant, Jim Nunn, regional construction manager, Larry Gadola, director of development, Jay Van Velzen, area operations manager and David Pauly, district operations manager. Planning Director Enger stated the Planning Commission had reviewed this request at its meeting on August 8, 1983, at which time it voted to recommend approval (4-1-0) subject to the recommendations included in the Staff report of August 5, 1983,and the additions and amendments as noted in the Minutes of the August 8th meeting, Enger noted this item will be reviewed by the Board of Appeals & Adjustments at its meeting on September 8, 1983, as a variance on exterior materials has been requested. Redpath asked what the possibility will be for a frontage road along TH 5. Enger said it is not likely that one would be built on the south side of TH 5 but more likely on the north side. All individual driveway accesses would be eliminated and would be consolidated instead. Penzel asked if there were any right-of-way dedications being made in con- junction with this proposal, Enger said some had been made in the past, but he did not contemplate any now. Enger noted that Hennepin County has studied this and feels there is adequate right-of-way. Redpath asked if there would be a median break extended to Terrey Pine Drive. Enger said if one were to be built it would still allow for turns onto and from Terrey Pine Drive both east and west of C.S.A.H. 4, There were no comments from the audience, 199U City Council Minutes -5- September 6, 1983 MOTION: Tangen moved, seconded by Redpath, to close the Public Hearing and to give 1st Reading to Ordinance No. 43-83, zoning. Motion carried unanimously. MOTION: Tangen moved, seconded by Redpath, to direct Staff to draft a Developer's Agreement taking into consideration the recommendations included in the Staff Report dated August 5, 1983, (with the exception of 1. f.) as well as the recommendations of the Planning Commission. Motion carried unanimously. Penzel requested that the radius of the right-out driveway be further looked at to preclude someone backing into the parking lot. Benshoof said this is the standard which was requested by Mn/DOT and is Mn/DOT's • standard design. Benshoof said he would look into the matter. Penzel asked City Staff to do likewise. C. VACATION OF UTILITY EASEMENT: Lot 4, Block 1, Prairie East 4th Addition (Resolution No. 83-209) Eric Anderson, property owner, asked for clarification as to what this action would accomplish. Penzel noted the easement would be removed since it was no longer necessary. Director of Public Works Dietz concurred and explained why this was necessary. MOTION: Redpath moved, seconded by Tangen, to close the Public Hearing and to adopt Resolution No. 83-209, vacating the utility easement, Lot 4, Block 1, Prairie East 4th Addition. Motion carried unanimously. D. VACATION OF UTILITY EASEMENT: Lot 8, Block 1, Edenvale 14th Addition (Resolution No. 83-210) MOTION: Redpath moved, seconded by Anderson, to close the Public Hearing and to adopt Resolution No. 83-210, vacating the utility easement, Lot 8, Block 1, Edenvale 14th Addition. Motion carried unanimously. E. VACATION OF UTILITY EASEMENT: Lot 2, Block 3, Creekview Estates (Resolution No. 83-211) MOTION: Redpath moved, seconded by Anderson, to close the Public Hearing and to adopt Resolution No. 83-211, vacating the utility easement, Lot 2, Block 3, Creekview Estates. Motion carried unanimously. F. REQUEST FOR LIQUOR LICENSE FOR FIDDLER'S DELI City Manager Jullie said notice of this Public Hearing had been published and a positive recommendation had been received from the Public Safety Department. Jerry Milenberg, Eagan, area supervisor for the Fiddler's Deli, was present to answer questions. MOTION: Redpath moved, seconded by Tangen, to close the Public Hearing and to grant the request for a liquor license for Fiddler's Deli. Motion carried unanimously. 199I September 6, 1983 City Council Minutes -6- 5e P V. PAYMENT OF CLAIMS NOS. 9310 - 9649 MOTION: Tangen moved, seconded by Anderson, to approve the Payment of Claims Nos. 9310 - 9649. Roll call vote: Anderson, Redpath, Tangen and Penzel.voted "aye." Motion carried unanimously. VI. REPORTS OF ADVISORY COMMISSIONS There were no reports. VII. PETITIONS, REQUESTS & COMMUNICATIONS j. A. TIM8ER 8AY MANOR HOMES by Richard Miller Homes, Inc. Request for preliminary plat of 14.8 acres into eight (8) lots. Location: Timber Lakes Drive and County Road 4 (Resolution No. 83-215 - preliminary plat) Jim Carver, Richard Miller Homes, addressed the request. Planning Oirector Enger said the Planning Commission had reviewed this request at its meeting on July 25, 1983, at which time it continued the discussion to August 8, 1983, to allow the proponent time to prepare a landscaping plan which would buffer the proposal from the exisiting single family homes. At the August 8th meeting action was continued to August 22 at which time the Planning Commission recommended approval subject to the conditions included in the July 22, 1983, Staff Report. Penzel asked what the intent of the developer was regarding the grading which had been done and had left a "scar' on the northern portion of the property. Carver said this is yet to be worked out with the City. Enger said definite instructions were given when this project was begun. He said he was surprised when the grading happened -- the watershed district was notified as well. He said he does not know what the proponent's inten- tions are. Enger said he had expected a comprehesive plan of this area by now. Penzel asked what the time schedule was. Mel Ford, general manager of Richard Miller Homes, said they will be coming before the City within a month or two and hope to begin building in the Spring. MOTION: Redpath moved, seconded by Anderson, to adopt Resolution No, 83-215, approving the preliminary plat of Timber 8ay Manor Homes for Richard Miller Homes, Inc. Penzel asked if there will be access 'to the lake from these lots. Ford said access would be via Outlot F. Pat 8enton, 7994 Island Road, said this is working out very well and he recommended the City Council approve the plat, VOTE ON THE MOTION: motion carried unanimously. 199z City Council Minutes -7- September 6, 1983 VIII. ORDINANCES & RESOLUTIONS A. 1st Reading of Ordinance No. 40-83 Zoning from Rural to Commercial Regional Service and adoption of Resolution No. 83-202 approving the preliminary plat for Menard's. Located east of existing Menard's building and adjacent to Plaza Drive. Mary Prochaska, proponent, addressed the revised proposal. Planning Director Enger noted the modification as requested by the City Council. He added that the change should break up the southern elevation of the building and has the potential to look attractive. Prochaska asked if he might be able to do the project in two steps since he has a prospect who is "ready to go". Enger said this possibility had been discussed with Prochaska by City Staff and the concensus was it would be all right since this would be the approved plan and any additions would have to conform to it. Tangen said he appreciated the fact that Prochaska addressed the City Counci1's concerns. Anderson expressed concern about the materials which are displayed and stored on the sidewalk in front of the Menard's store. He asked if some- • thing could be done to make the sidewalk useable to pedestrians. Penzel said the City Code includes a provision covering outside display of promo- ( tional materials. Enger said this amounts to 10% of the floor area which can be used for outdoor displays. Prochaska said he would check on this tomorrow to make certain Menard's is in conformance. Penzel said it was his thought that, given the present ordinance, there is nothing the City can do at this time to rectify the situation. City Attorney Pauly said the present ordinance would have to be modified if Anderson's concerns were to be addressed. MOTION: Redpath moved, seconded by Tangen, to give 1st Reading to Ordinance No. 40-83. Motion carried unanimously. MOTION: Redpath moved, seconded by Tangen, to adopt Resolution No. 83-202, approving the preliminary plat for Menard's. Motion carried unanimously. MOTION: Redpath moved, seconded by Tangen, to direct Staff to prepare a draft summary Resolution of approval per Commission and Staff recommenda- tions including reference to the sidewalk in front of Menard's and the condition that it be cleared for use by "cross-traffic." Motion carried unanimously. IX. REPORTS OF OFFICERS, BOARDS & COMMISSIONS A. Reports of Council Members MOTION: Redpath moved, seconded by Tangen, to adopt a Resolution wishing Councilman George Bentley a happy birthday. Motion carried unanimously. City Council Minutes -8- September 6, 1983 Anderson expressed concern about the outside display of materials such as was previously discussed regarding Menard's. He said he was not satisfied with how this is presently handled. Penzel said the Council can request Staff to investigate the matter further. MOTION: Anderson moved, seconded by Tangen, to refer the matter of outside display of materials to Staff for study and recommendations. Motion carried unanimously. B. Report of City Manager 1. Receipt of Draft 1984 City Budget 1 City Manager Jullie distributed copies of the Draft 1984 City Budget to members of the City Council. MOTION: Redpath moved, seconded by Anderson, to hold a Special Meeting of the City Council on Tuesday, September 13, 1983, at 7:30 p.m. to discuss the 1984 City Budget. Motion carried unanimously. Councilman Tangen noted he will be out of town on September 13th but would like to have information on what happens at that meeting prior to the Council meeting on September 20th. • There was discussion as to space needs in City Hall. City Manager Jullie noted the School Board has offered the use of the Board Room on Mondays and Tuesdays should the Council so desire. MOTION: Anderson moved, seconded by Redpath, to hold the Special Meeting of the City Council scheduled for 7:30 p,m, on Tuesday, September 13, 1983, in the Board Room of the School Administration Building at 8100 School Road. Motion carried unanimously. C. Report of City Attorney City Attorney Pauly stated he had furnished members of the Council with copies of a court order which issued a temporary injunction on Terry Douglas enjoining him from further grading or land alteration. This order provides for grading only for purposes of restoration or control of erosion which might occur. It also requests that the Chief Judge assign the matter for an early trial. Pauly said he has followed up on the Supreme Court ruling regarding campaign signs. He said he has been advised this will be on for oral arguments on October 12th or 13th. He said he will be monitoring this decision and hopes it will set forth more definitive guide lines on local authority regulations. is`iy City Council Minutes -9- September 6, 1983 D. Report of Director of Public Works 1. Award 1983 Seal Coat Project (Resolution No. 83-216) MOTION: Redpath moved, seconded by Tangen, to adopt Resolution No. 83-216, accepting the bid for I.C. 52-055, Seal Coat Project for 1983. Roll call vote: Anderson, Redpath, Tangen and Penzel voted "aye." Motion carried unanimously. X. NEW BUSINESS There was none. XI. ADJOURNMENT MOTION: Redpath moved, seconded by Anderson, to adjourn the meeting at 9:52 p.m. Motion carried unanimously. • 149S UNAPPROVED MINUTES EDEN PRAIRIE CITY COUNCIL SPECIAL MEETING TUESDAY, SEPTEMBER 13, 1983 7:30 p.m., School Board Room Administration Bldg. COUNCIL MEMBERS: Mayor Wolfgang H. Penzel, Richard Anderson, George Bentley, Paul Redpath and George Tangen CITY COUNCIL STAFF: City Manager Carl J. Jullie, Finance Director John D. Frane, and Recording Secretary Karen Michael I. ROLL CALL Councilman George Tangen was absent. II. CALL MEETING TO ORDER The meeting was called to order by Mayor Wolfgang H. Penzel. III. APPROVAL OF AGENDA MOTION: Bentley moved, seconded by Redpath, to approve the Agenda as published. Motion carried unanimously. IV. DISCUSSION OF THE 1984 CITY BUDGET • City Manager Jullie addressed his memorandum of September 9, 1983, in which he outlined the significant aspects of the proposed 1984 City Budget and in which he highlighted major changes from the 1983 budget. Penzel asked the Council how it wished to proceed with the discussion. It was determined to review the Budget on a page by page basis. Redpath asked what effect there would be on the Budget if no more increments were captured into the tax increment financing district. Finance Director Frane said there is a balloon payment built into the financing which would result in heavy levies if the tax increments were not captured. Frane said the City will only capture the values until there is enough to cover the debt which has been incurred. Bentley asked how much one mill means in tax dollars. Frane said a mill is equal to approximately $224,000. Bentley said this represents the amount which the City will lose to fiscal disparities; the tax payers in the City should direct their concerns to the Legislature so this can be corrected. 1996 Special City Council Meeting -2- September 13, 1983 Penzel noted that the quality of management in the City of Eden Prairie is outstanding; had normal economics prevailed, the City Council would be looking at a budget 3 - 5 mills higher. It was suggested the engineering and administration permits and fees (page 2) be transferred routinely rather than on a year-end basis. There was discussion (page 4) regarding the additional employees in the Building Department. The discussion centered around the advantages and disadvantages of hiring part-time/seasonal employees vs. hiring a speci- alist (i.e. consultant-type) to do a particular job. Penzel questioned the deletion of the administrative assistant which had been recommended by the Council and the 1 clerical position (page 6). Bentley asked if there was any way of measuring whether or not that posi- tion would be of value. Redpath said he felt the position would be needed if the City is to pursue the Star Cities Program. Bentley said it appeared to him that the City could actually reap benefits over and above the per- son's salary. Penzel said he felt the Council should take measures to see that this is done; the press of business now does not allow the Manager to step away from the position for any amount of time. Bentley noted the City is growing and the Manager's Staff has not increased in a number of years. Anderson concurred. The concensus was to leave the position of administra- tive assistant in the budget. Penzel questioned the "incremental creep" in the salary figures for Depart- ment Heads/Supervisors. Frane explained this reflected an additional 8 working hours in 1984 and salary increases which had become effective during 1983. Page 8: The recommended salary for the Assessor will be looked at further since the present City Assessor will be retiring effective March 1984. There was discussion on the cost efficiency of using old police cars by other City departments. Anderson noted the type of cars which are used by the Public Safety Department are not fuel efficient. He asked if it would not be more efficient to get rid of the police cars and buy cars which would be more fuel efficient for use by City Hall employees. Bentley asked that more information be provided by Jack Hacking as to the specifi- cations for police vehicles. Page 11: Additional information was requested regarding the part time personal services request, repair & maintenance supplies, building repairs, and construc- tion materials categories. Anderson asked if consideration might be given to charging user fees in the City parks. Bentley suggested using zero based budgeting for the 19B5 City Budget. He noted he had received a number of complaints from residents regarding the stationery which is being used by the Community Services Department. Page 12: Additional information was requested regarding attendance figures for the various programs offered; are increases in budget figures justified by increased attendance figures. Anderson suggested programs be looked at for what they do and not only at what they cost. NCO • Special City Council Meeting -3- September 13, 1983 Page 14: Additional information was requested regarding the Community Event, Printing & Postage, Supplies, and Revenue items. Page 15: Additional information was requested on the Other, Storefront, and Equipment Repair items. Page 19: Additional information was requested regarding the Part Time Personal Services item. 1 Page 20: Additional information was requested on the Art & Music and the Admission Fees items. Page 21: Additional information was requested on the Fees item. • Page 22: Anderson asked if the City was involved in the treatment of white oaks. It was recommended that Stu Fox, City Forester, look at the treatment of white oaks, perhaps making Arbotect available at cost to homeowners. Page 23: The concensus was to delete the Chairs and Movie Projector items • from the Community Center budget. There was discussion that the movie pro- jector which was recently purchased for the Water Department could be used at the Community Center. It was also suggested that a movie projector at the Community Center could be rented out to those groups/organizations using the meeting rooms thereby paying for itself over a period of time. Discussion on the Budget ended after Page 24. MOTION: Anderson moved, seconded by Bentley, to continue discussion of the o be held on Tuesday, September 27, 1983, at 7:30 p.m,4 Budget to a Special Meeting of Motion Council City tcarriedunanimously. V. NEW BUSINESS There was disucssion on the number of items to be on the Agenda for the City Council meeting to be held on Tuesday, September 20, 1983. The con- sensus was to move review of the Purgatory Creek Recreation Area Plan to the September 27, 1983, meeting. MOTION: Anderson moved, seconded by Bentley, to review the Purgatory Creek Recreation Area Plan at the Special Meeting of the City Council to be held on Tuesday, September 27, 1983, at 7:30 p.m. Motion carried unanimously. VI. ADJOURNMENT MOTION: Redpath moved, seconded by Bentley, to adjourn the meeting at 10:50 p.m. Motion carried unanimously. • p , : • MEMORANDUM TO: Mayor and City Council THRU: • Bob Lambert, Director of Community S ry s h FROM: Sandy Werts, Recreation Supervise DATE: September 14, 1983 SUBJECT: Authorization to Seek Bids for Mechanical and Electrical Work at Cummins-Grill Homestead • At the May 3, 1983 City Council meeting, staff was authorized to select a restoration architect to develop cost figures for the replacement of the wiring, installation of a central heating system, and upgrading plumbing at the Cummins-Grill Homestead. This work was to be funded through a $19,474 Community Development Block Grant. Work on the preparation of specifications for this work has been completed and the cost estimate, excluding the architects fees, is $1S,500. This breaks down as follows: Electrical $7,0OO ' • Plumbing 2,800 Heating 5,700 • The architect's fee, which is not to exceed $4,O00, included the preparation of measured drawings which was necessary to preparation of specifications for other projects. Staff requests authorization from the City Council to seek bids for the electrical and mechanical work so that work on this project may commence before winter. The request for bids would be advertised September 22 and 29, 1983 in the Eden Prairie News, and September 23 in the Construction Bulletin. The closing date for the bids will be Tuesday, October 11, at 2:00 p.m. • • • • • is • • • /999 i MEMORANDUM TO: Mayor and City Council THRU: Bob Lambert, Director of Community Services FROM: Sandra F. Werts, Recreation Supervisor • DATE: September 15, 1983 SUBJECT: Authorization to Prepare Plans and Specifications for Exterior Restoration and Seek Quotes In July, the City Council authorized staff to apply for a restoration grant under the 1983 Federal Jobs Act. The request was for $12,250 in Federal grants and $6,125 in State grants, with the City providing a match in the amount of $6,125. This money was to be used for exterior restoration. The work and estimated costs were: 1. Repointing of 500 square feet brickwork $2,500 • ' • 2. Repair or replace frames, glass, storm windows, sills, sashes, and paint 26 windows $9,000 3. Repair, refinish, weatherstrip S exterior doors $1,000 4. Paint roof trim, eaves, and bay window $2,000 E 5. Restore front porch $7,000 On August 11, 1983, the City received notification that it was awarded an $8,500 • Federal grant and a $3,000 State grant for exterior refurbishing. The City's match of $5,500 will be funded through the use of volunteer and in-kind labor, and the $3,000 grant from the Eden Prairie Foundation for the window restoration. $7,500 was cut from the original request and the restoration of the front porch has been eliminated from the original project. The volunteers would be used for exterior painting, and in-kind labor would be used to demolish the brick porch on the east side of the house. According to Federal guidelines, work on this project must be underway by January 1, 1984, and all work must be completed by July 1, 1984. Staff would like to receive authorization for the architect to proceed with the development of plans and specif- ications for this phase of the project, and at the same time to be authorized to seek quotes for completion of the contracted work. SW:md • • 2600 I I MEMO TO: Mayor and City Council FROM: Jean Johnson, Zoning Administrator DATE: September 15, 1983 RE: ORDINANCE NO. 37-83 As requested by the Council, I met with the Eden Prairie 1 Ministers , Pastors, and Priests. The meeting was held on Sept. 1 at the Eden Prairie Presbyterian Church. Seven church representatives attended the meeting. t The draft from our Attorney's office incorporating the Council's ideas of permitting existing non-conforming signs, eliminating church symbols from the sign square footage, and permitting special event signs appeared to meet their needs. No additional requests were made and it appears that the churches intend to cooperate on selecting locations for their off site directional signs. They plan to request placing 2 or 3 directional signs upon a single post at the desired intersection, thereby eliminating the need for 2 or 3 separate posts. The churches have been informed that the 2nd reading of the ordinance is on the Council's agenda of Sept. 20th and they have all received a copy of this most recent draft. Because the item is on the consent calendar, I requested they call prior to the meeting if they have additional questions or comments. e , 2001 • ORDINANCE NO. 37-B3 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, AMENDING CITY CODE SECTION 11.70, SUED. 2., 6., TO REDEFINE DIRECTIONAL SIGNS FOR CHURCHES AND TO ADOPT A DEFINITION FOR DIRECTIONAL SIGNS FOR SCHOOLS AND PUBLICLY OWNED LAND OR BUILDINGS; • ADOPTING CITY CODE SECTION 11.70, SUBD. 2., 35., TO DEFINE RELIGIOUS SYMBOLS; AMENDING CITY CODE SECTION 11.70, SUED. 3., T., TO INCLUDE DIRECTIONAL SIGNS FOR SCHOOLS AND PUBLICLY OWNED LAND AND BUILDINGS; ADOPTING CITY CODE SECTION 11.70, SUBD. 4., I., RELATING TO PUBLIC DISTRICT SIGNS; ADOPTING CITY CODE SECTION 11.70, SUBD. 4., I., 5., TO ALLOW EXISTING NON-CONFORMING DIRECTIONAL SIGNS FOR CHURCHES, SCHOOLS, AND PUBLICLY OWNED LAND OR BUILDINGS TO CONTINUE IN USE SUBJECT TO SECTION 11.75; AMENDING CITY CODE SECTION 11.70, SUBD. 6., B., TO EXCLUDE NON-CONFORMING • DIRECTIONAL SIGNS FOR CHURCHES, SCHOOLS, OR PUBLICLY OWNED LAND OR BUILDINGS FROM THE SIX YEAR CONFORMANCE REQUIREMENT; AND ADOPTING BY REFERENCE CITY CODE CHAPTERS 1, AND SECTION 11.99, WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS. THE CITY COUNCIL OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. City Code Section 11.70, Subd., 2., 6., shall be and is amended to read as follows: Section 11.70, Subd. 2., • 6. Directional signs for churches, schools, or publicly owned land or buildings--A sign which bears the address and/or name of a church, school, or publicly owned land or building and a directional arrow pointing to said location. Section 2. City Code Section 11.70, Spbd. 2., shall be and is amended by adding 35. to read as follows: Section 11.70, Subd. 2., 35. Religious Symbols--Pictures, designs, sculptures, or similar objects that stand for or suggest religious faith, ideas, or qualities. Section 3. City Code Section 11.70, Subd. 3., T., shall be and is amended to read as follows: Section 11.70, Subd. 3., T. Directional signs for churches, schools, or publicly owned land or buildings shalt be allowed as permitted by Subdivision 4, hereof. Section 4. City Code Section 11.70, Subd. 4., shall be and is amended by adding I. to read as follows: I. Public District 1. Wall Signs: One sign per building not to exceed, 24 square feet in area. Where a building is located on a corner lot, one sign may be located on each wall facing a street provided one does not exceed 24 square feet and the other does not exceed 16 square feet. All wall signs shall be uniform in design. RELIGIOUS SYMBOLS SHALL NOT BE CONSIDERED PART OF THE WALL SIGN AREA. 2oO 2. Free-standing signs: a. One free-standing sign for each building, lot, parcel, or tract of land may be erected on the lot, parcel, or tract of land it applies or on which any such building is situated. The maximum height of a free-standing sign shall be 8 feet and its total area shall not exceed 80 square feet. RELIGIOUS SYMBOLS SHALL NOT BE CONSIDERED PART OF THE FREE-STANDING SIGN AREA. Where a building has two or more than two street frontages, only one free-standing sign of the above size shall be permitted and one additional free-standing sign shall be permitted not to exceed 35 square feet in size. b. Off-site directional signs: Two additional church, school, or publicly owned land or buildings directional signs shall be permitted in locations other than the lot, parcel, or tract of land which it applies. Said signs shall be erected on non-public land, or if the sign is one owned by a public body such directional sign may be erected upon public owned property provided: i. The maximum size of the sign shall not exceed 3 square feet. 11. The owner's permission must be obtained. The sign shall, be a minimum height of 4 feet, maximum height of 6 feet. lv. Signs shall be uniform in design. 3. The signage program will be reviewed by the Director of Planning. 4. TEMPORARY SPECIAL EVENT SIGNS SHALL BE PERMITTED FOR A PERIOD NOT TO EXCEED 10 DAYS. SUCH SIGNS SHALL BE NO HIGHER THAN 8 FEET AND NOT LARGER THAN 32 SQUARE FEET. 5. Directional signs to churches, schools, or publicly owned land or buildings in existence at the date of this section or amendments thereto, which do not conform to these regulations, shall be allowed to continue in use as provided in Section 11.75. Section 5. City Code Section 11.70, Subd. 6., B., shall be and is amended to read as follows: Section 11.70, Subd. 6., B. A lawful sign on the effective date of this section or of amendments thereto that does not conform to these provisions shall be regarded as a non- conforming sign. Except for directional signs for churches, schools, or publicly owned land or buildings, non-conforming use of which is governed by Section 11.70, Subd. 4., I., 5., such signs may be continued in use when properly and safely maintained for a period of six years from the date of enactment of this section or 2003 . : from the date of any amendments thereto which cause a sign to become non-conforming. At the end of the six years they shall be made to conform with the provisions of 4 this section or they shall be removed by the owner. Section 6. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code including Penalty for Violation" and . Section 11.99 are hereby adopted in their entirety, by reference, as thou repeated verbatim herein. Section 7. This ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , 1983, and finally read and adopted and orderedpublished at a regular meeting of the City Council of said City on the day of , 1983. ATTEST: John D. Frane, City Clerk Wolfgang H. Penze , Mayor PUBLISHED in the Eden Prairie News on the 'day of , 1983. { • aooq • CITY OF EDEN PRAIRIE CLERK'S LICENSE APPLICATION LIST September 20, 1983 CONTRACTOR (MULTI-FAMILY & COMM.) Balco Building Systems, Inc. Lester's of Minnesota, Inc. Northwest Properties Corporation Trucker Sheehy Constructors, Inc. CONTRACTOR (I & 2 Family) Gawel & Knaeble Contractors, Inc. Hand Construction, Inc. Minnesota Home Builders, Inc. Peterson Pools HEATING & VENTILATING Royalton Heating & Cooling GAS FITTER • Royalton Heating & Cooling PLUMBING R. C. Plumbing Vending Coca Cola Bottling Co. These licenses have been approved by the department heads responsible for the licensed activity. 0.c' Pat So e", Licensing 2oo5 . CITY OF EDEN PRAIRIE PRELIMINARY AND FINAL PLAT REPORT FOR CREEKVIEW ESTATES 2nd ADDITION TO: Mayor Penzel and City Council Members THROUGH: Carl Jullie, City Manager Eugene A. Dietz, Director of Public Works f. • FROM: David L. Olson, Engineering Technician 46:7 DATE: September 14, 1983 ' SUBJECT: CREEKVIEW ESTATES 2nd ADDITION PROPOSAL: The owner and developer, Lawrence E. Heinen has requested preliminary and final plat approval of Creekview Estates 2nd Addition. This plat is a redivision of Lots 1 and 2, Block 3, Creekview Estates • adjusting the common lot line to accommodate a home proposed by a purchaser. HISTORY: Zoning to RI-13.5 was finally read and approved by the City Council on October 7, 1980, per Ordinance #79-39. The final plat of Creekview Estates was approved by the City Council on February 3, 1981, per Resolution 081-30. Vacation of the common lot line utility and drainage easement was authorized by the City Council on September 6, 1983, per Resolution #83-211. The Developer's Agreement referred to within this report was executed on October 7, 1980. This Agreement shall also apply to Creekview Estates 2nd Addition. • SUMMARY: 1. All utilities and streets serving this addition have been installed. 2. The requirements for Park Dedication are covered in the Developer's Agreement. 3. Bonding will not be necessary. RECOMMENDATION: Recommend approval of the final plat of Creekview Estates 2nd Addition subject to the requirements of this report, the Developer's Agreement and the following: 1. Receipt of City Engineering fee in the amount of 560.00. DLO:sg September 20, 1983 CITY OF EDEN PRAIRIE HENNEPiN COUNTY, MINNESOTA • RESOLUTION NO. 83-222 A RESOLUTION APPROVING PRELIMINARY AND FINAL PLAT OF CREEKVIEW ESTATES 2nd ADDITION WHEREAS, the plat of Creekview Estates 2nd Addition, has been sub- mitted in the manner required for platting land .ender the Eden Prairie Ordinance t. Code and under Chapter 462 of the Minnesota Statutes and all proceedings have been duly had thereunder, and WHEREAS, said plat is in all respects consistent with the City plan and the regulations and requirements of the laws of the State of Minnesota and ordin- ances of the City of Eden Prairie. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CiTY OF EDEN PRAIRIE: A. Plat Approval Request for Creekview Estates 2nd Addition is approved upon compliance with the reconrnendation of the City Engineer's Report on this plat dated September 14, 1983 B. That the City Clerk is hereby directed to file a certified copy of this the Deed /or trar ofs Titles nfor their in the useas required Register requiredby MSAf462.35Bf,dSubd. 3. C. That the City Clerk is hereby directed to supply a certified copy of this Resolution to the owners and subdividers of the above named plat. D. That the Mayor and City Manager are hereby authorized to Execute the certificate of approval on behalf of the City Council upon com- pliance with the foregoing provisions. ADOPTED by the City Council on September 20, 1983. Wol gang H. Penzel,,Ma-y-6 ATTEST: SEAL John D. Frane, Clerk __._ OUP) TO: Mayor and City Council FROM: John D. Frane, Finance Director DATE: September 16, 1983 RE: Final approval M.I.D.B. Cotton-Hagen - $500,000 Resolution No. 83-230 This project was given preliminary approval by the City on July 19, 1983. The documents have been reviewed and approved by the City Attorney's office. Resolution No. 83-230 will be in the Mayor's signature file. JDF:bw 9/16/53 • ,20o3 CHANGE ORDER NO. 1 • SEPTEMBER 13, 1983 PROJECT: Utility and Street Improvements in Lorence 1st & 2nd Addition I.C. 52-032 TO: ORFEI & SONS, INC. You are hereby directed to make the following changes to your Contract for the above referenced project. NATURE OF CHANGE: Remove and replace existing subgrade material at locations specified by the Engineer. ADJUSTMENTS TO CONTRACT QUANTITIES: ( Add the following quantities to the current Contract quantities. Subgrade Correction 4184 C.Y. @ $1.55 = $ 6484.20 Subgrade Backfill 3653 C.Y. @ $1.39 = $ 5077.67 Subgrade Backfill 252 S.Y.(84 C.Y.) @ $1.94 (6" thick) x 2 = $ 978.00 TOTAL $ 12,539.87 SUMMARY OF ADJUSTMENTS TO CONTRACT TOTAL AMOUNT: Contract Total Amount prior to this Change Order $ 235,418.33 Increase resulting from this Change Order $ 12,539.87 1S Revised Contract Total Amount including this Change Order - $ 247,958.20 THE ABOVE CHANGES ARE APPROVED: THE ABOVE CHANGES ARE ACCEPTED: THE CITY OF EDEN PRAIRIE, MN. ORFEI & SONS, INC. By By DATE DATE 9/v-1U • CITY'OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 38-83 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the R1-13.5 District and be placed in the Planned Unit Development 8-83 District (hereinafter "PUD 8-83"), which includes R1-9.5 Zoning District. Section 3. The land shall be subject to the terms and conditions of that certain Developer's Agreement dated as of , 1983, entered into between Centex Homes Midwest, Inc., and the City of Eden Prairie (hereinafter "Developer's Agreement"). The Developer's Agreement contains the terms and conditions of PUD 8-83, and are hereby made a part hereof. Section 4. The City Council hereby makes the following findings: A. PUD 8-83 is not in conflict with the goals of the Guide Plan of the City. B. PUD 8-83 is designed in such a manner to form a desirable and unified environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code, which are contained in PUD 8-83, are justified by the design of the development described therein. D. PUD 8-83 is of sufficient size, composition, and arrangement that its construction, marketing, and operation is feasible as a complete unit without dependence upon any subsequent unit. Section 5. The proposal is hereby adopted and the land shall be, and hereby is, removed from the R1-13.5 District and shall be included hereafter in the Planned Unit Development 8-83 District, and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B, shall be and are amended accordingly. Section 6. City Code Chapter 1 entitled "General Provisions and • Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 11.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference, as though repeated verbatim herein. Section 7. This Ordinance shall become effective from and after its 2 010 • passage and publication. jI� FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of . ATTEST: John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of • i 2010 A • • • • • Exhibit A - 1 Legal Description • Block 5, Lots 19-47, Block 6, Ridgewood West, Hennepin County, Minnesota. is • • • • 2C11 Ridgewood Westover-Centex DEVELOPER'S AGREEMENT THIS AGREEMENT, made and entered into as of , 1983, by and between Centex Homes Midwest, Inc., Nevada corporation, hereinafter referred to as "Owner," and the CITY OF EOEN PRAIRIE, a municipal corporation, hereinafter referred to as "City;" WITNESSETH: WHEREAS, City previously approved agreements for development of the land, between Owner and City, said land being that as described in Exhibit A, attached • hereto and made a part hereof, and hereinafter referred to as "the property," and said previous agreements between Owner and City described below and as follows: A Oecember 5, 1978, agreement for 88 acres of land, approving zoning from Rural to R1-13.5 for 176 single family lots on approximately 86 acres and a totlot on approximately 1.75 acres; An amendment to the December 5, 1978, agreement, dated February 20, 1979; An amendment to the December 5, 1978, agreement, dated September 21, 1982, agreement for 64 acres of the original 88 acres described in the December 5, 1978, agreement, approving Planned Unit Oevelopment #82-168; and, WHEREAS, Owner has applied for Planned Unit Oevelopment District for medium density clustered single family residential development, Zoning Oistrict change from R1-13.5 to R1-9.5 and preliminary plat of 18.39 acres of the original 88 acres for 83 lots; NOW, THEREFORE, in consideration of the City adopting Ordinance #38-83 and Resolution #83-132, Owner covenants and agrees to construction upon, development, and maintenance of said property as follows: 1. Owner shall plat and develop the property in conformance with the 20 io • • material revised and dated August 26, 1983, reviewed and approved by • the City Council on August 2, 1983, and attached hereto as Exhibit B • { and made a part hereof, subject to such changes and modifications as provided herein. Owner shall not develop, construct upon, or maintain the property in any other respect or manner than provided herein. 2. Owner covenants and agrees to the performance and observance by Owner at such times and in such manner as provided therein of all of the terms, covenants, agreements, and conditions set forth in Exhibit C, attached hereto and made a part hereof. • 3. Owner shall develop the property in accordance with that certain developer's agreement dated December 5, 1978, as amended February 20, 1979, and September 21, 1982, entered into by and between Owner and City, except to the extent that said agreement is inconsistent with this Agreement. Such agreement, as amended, is incorporated herein by reference. Planned Unit Development #82-168, approved by the City Council, is hereby amended to the extent that it is inconsistent with this Agreement. 4. Prior to any grading or construction on the property, Developer shall place a snow fence around the wooded areas of the property as depicted on Exhibit 8. Developer shall not permit others to disturb the area within the snow fencing. 5. Prior to building permit issuance, Owner shall submit to the Director of Planning, and receive the Director's approval of a revised landscaping plan, with grading, site layout, plant material, type, and sizes. 6. Concurrent with street and utility construction, Owner shall, in accordance with the specifications of the City Engineer, construct a five-foot wide, five-inch deep, concrete sidewalk, with let-down curb and gutter, in the following locations: a. West and north of the driving surface, and outside of the right-of-way of Knollwood Drive, commencing at Cumberland Road and terminating at Hawthorne Drive. b. East and south of the driving surface, and outside of the right-of-way of Hawthorne Drive, commencing at Knollwood Drive and terminating at Cumberland Road. • 1 IN WITNESS WHEREOF, the parties to this Agreement have caused these presents to be executed as of the day and year aforesaid. CITY OF EDEN PRAIRIE Wolfgang H. Penzel, Mayor • Carl J. Jullie, City Manager • STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1983, by Wolfgang H. Penzel, the Mayor, and Carl J. Jullie, the City Manager, of the City of Eden Prairie, a Minnesota municipal corporation, on ( behalf of the corporation. Notary Public CENTEX HOMES MIDWEST, INC. 'Timothy R. Eller, President Minnesota Division STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1983, by Timothy R. Eller, President, Minnesota Division, Centex Homes Midwest, Inc., a Nevada corporation, on behalf of the corporation. 201(1 Public I Ridgewood West 2nd/Westover CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ' RESOLUTION NO. 83-217 A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 38-83 AND ORDERING THE PUBLICATION OF SAID SUMMARY WHEREAS, Ordinance No. 38-83 was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie on the day of , 1983; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE: A. That the text of the summary of Ordinance No. 38-83, which is attached hereto, is approved, and the City Council finds that said text clearly informs the public of the intent and effect of said ordinance. B. That said text shall be published once in the Eden Prairie News in a - body type no smaller than brevier or eight-point type, as defined in Minn. Stat. sec. 331.07. C. That a printed copy of the Ordinance shall be made available for inspection by any person during regular office hours at the office of the City Clerk and a copy of the entire text of the Ordinance shall be posted in the City Hall. D. That Ordinance No. 38-83 shall be recorded in the ordinance book, along with proof of publication required by paragraph B herein, within 20 days after said publication. ADOPTED by the City Council on , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Frane, City Clerk zoto F Ridgewood West 2nd/Westover The following is the full text of the City of Eden Prairie Ordinance No. 38-83, which was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie on , 1983. Following the text of the Ordinance, the Developer's Agreement, which is incorporated therein by Section 5 of the Ordinance, is summarized. CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA • ORDINANCE NO. 38-83 AN ORDINANCE OF THE CITY DF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EOEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the R1-13.5 District and be placed in the Planned Unit Development 8-83 District (hereinafter "PUD 8-83"), which includes R1-9.5 Zoning District. Section 3. The land shall be subject to the terms and conditions of that certain Developer's Agreement dated as of , 1983, entered into between Centex Homes Midwest, Inc., and the City of Eden Prairie (hereinafter "Developer's Agreement"). The Developer's Agreement contains the terms and conditions of PUD 8-83, and are hereby made a part hereof. Section 4. The City Council hereby makes the following findings: A. PUD 8-83 is not in conflict with the goals of the Guide Plan of the City. B. PUD 8-83 is designed in such a manner to form a desirable and unified environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code, which are contained in PUD 8-83, are justified by the design of the development described therein. D. PUD 8-83 is of sufficient size, composition, and arrangement that its construction, marketing, and operation is feasible as a complete unit without dependence upon any subsequent unit. Section 5. The proposal is hereby adopted and the land shall be, and hereby is, removed from the R1-13.5 District and shall be included hereafter in the Planned Unit Development 8-83 District, and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B, shall be and are amended accordingly. Section 6. City Code chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and ( Section 11.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference, as though repeated verbatim herein. Section 7. This Ordinance shall become effective from and after its passage and publication. • FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of .ATTEST: John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of Summary of Developer's Agreement: Ridgewood West 2nd/Westover Developer will develop the land as described in Exhibit A which is attached to and incorporated in the Developer's Agreement. In addition, the Developer's Agreement provides for: 1. Submission of plans regarding sewer, water, and drainage to Engineering Department. 2. Submission to the City Engineer of a development Plan for the land. 3. Submission to Watershed District of storm sewer construction plans. Developer to follow the rules and regulations of said Watershed District. • 4. Developer's warranty of title to the land. 5. Construction and maintenance of public improvements which are to be conveyed to the City as well as preservation and restoration of areas surrounding said improvements. Submission of a bond or letter of credit to ensure the quality of said construction, maintenance, preservation, and restoration. 6. Rough grading to be performed by the Developer for improvements which the City will construct pursuant to 100% petition of all owners of the land. Submission of a bond or letter of credit for the rough grading. 7. Payment of first three (3) years' street lighting, engineering review; and street signs costs. 8. Developer's commitment not to oppose rezoning if Developer fails to proceed in accordance with the Developer's Agreement within 24 months. 9. Application of the Developer's Agreement to transferees of the land. 10. City's remedies in the event that Developer violates the provisions of the Developer's Agreement. 11. Notice to the City's cable franchise. 12. Compliance with developer's agreement dated December 5, 1979, as amended and dated February 20, 1979, and September 21, 1982, to the extent that such agreements are not consistent with the agreement dated - , 1983. 13. Developer agrees to place a snow fence around the wooded areas of the property as depicted on Exhibit B, prior to grading or construction upon the property. Developer shall not allow others to disturb the areas within the snow fencing. 14. Developer shall submit to the Director of Planning, and receive the Director's approval of, a landscaping plan, with grading, site layout, plant material, type, and sizes. 15. Concurrent with street and utility construction, Owner shall construct a five-foot wide, five-inch deep, concrete sidewalk, with let-down curb and in 1 _ gutter, in the following locations: West and north of the driving surface, and outside of the right-of- way of Knollwood Drive, commencing at Cumberland Road and terminating at Hawthorne Drive. East and south of the driving surface, and outside of the right-of- way of Hawthorne Drive, commencing at Knollwood Drive and terminating at Cumberland Road. NOTICE: A printed copy of this ordinance is available for inspection by any person during regular office hours at the office of the City Clerk. ADOPTED by the Eden Prairie City Council on , 1983. John D. Frane, City Clerk Wolfgang H. Penzel, Mayor • • a0107 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 83-218 A RESOLUTION SETTING FORTH SPECIFIC CONDITIONS OF COUNCIL APPROVAL OF THE BURGER KING RESTAURANT AT THE SOUTHEAST CORNER OF HIGHWAY #5 AND COUNTY ROAD #4 BE IT RESOLVED that the proposal for a restaurant on 2.15 acres for Burger King, located south of Highway #5 and east of County Road #4, is herein approved subject to the following specific conditions: 1. The plans revised and dated August 8, 1983, and attached hereto as Exhibit A, shall apply. 2. Prior to building permit issuance, Burger King shall: A. Submit detailed water, sanitary and storm sewer plans to the Engineering Department for review and receive the Engineering Department's approval of said plans. B. Receive the approval of the Watershed District. 'C. Provide a copy of the easement referred to in Exhibit B, Letter of Intent, attached hereto and made a part hereof, to the City. D. Prior to subdivision of the parcel, access from the future parcel to the east shall be provided to the public road referred to in Exhibit B, Letter of Intent. 3. Prior to occupancy permit issuance, the road referred to in the Letter of Intent, Exhibit B hereof, shall be constructed to standards acceptable to the City Engineer. ADOPTED by the City Council on , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Franc, City Clerk • aoil • .,,...--- RECITALS . R Letter of Intent 1`C Burger i:.eg Corporation, Birchwood Laboratories and E. A. Sween own property abutting on a private driveway owned by E. A. Sween which provides access to County Road 4. burger King Corporation and Birchwood Laboratories want access to the driveway for the purpose of giving their respective properties access to County • Road 4. Both Burger King and E. A. Sween have development applications and proposals at the present time in front of the City of Eden Prairie. The City has indicated a desire to resolve the access to County Road 4 over the present driveway, as a condition to the development of the Burger King proposals and the E. A. Sween proposal and possible future development of Birchwood Laboratories' property. This letter is made for the purpose of memorializing the intent of the parties with respect to the • question of access to County Road 4 from their respective properties. INTENT The undersigned companies, for the purpose of setting forth their respective intent, hereby state as follows: 1. That it is the intent of the parties that a roadway will be constructed approximately 38 feet in width, with a concrete curb and gutter, appropriate drainage and 3-1/2" of bituminous surface over 8" of Class 5 base, with 1" of overlay over the existing bituminous roadway from County Road 4 going East approximately 200 feet. *At said point there will be a turn-around provided with an approximate 60 foot radius. There will be access through the turn-around to the E.A. Sween property. 2. That after completion of the roadway to the approximate - foregoing specifications and its acceptance by the City as a properly constructed roadway, E. A. Sween Company shall dedicate to the City of Eden Prairie said portion as a public roadway. 3. That Burger King and Birchwood Labs shall pay the cost of a security gate for E. A. Sween Company to be erected at the existing Easterly end of the roadway up to a cost of $8,500. 4. That E. A. Sween Company shall allow Burger King access 01 during the period of construction and up until acceptance by the ma City of the public roadway. Provided, however, that in the event Burger King and Birchwood Labs do not promptly move toward ram' completion of the roadway; or, fail to correct any conditions necessary for acceptance by the City, said easement shall cease to exist. 5. Burger King and Birchwood Labs shall provide necessary surveys to properly and adequately describe the area of public dedication. 6. That Burger King and Birchwood Labs, jointly and severally, shall hold E. A. Sween Company harmless from the costs of all construction contemplated herein. ,.... 1} ir or to City standards, if different from above ob a 7. That the foregoing Is conditioned upon E. A. Sween receiving approval to proceed with its office building development presently before the City and shall not be effective until such development is approved. • E. A. SWEEN COMPANY• • Douglas M. fincham Its: Vivo Prrei./tont of (l+wra►inns BURGER KING Its: e4 BIRCHWOOD LABORATORIES By: //./,d John A.06,464);74 Its: CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ( ORDINANCE NO. 43-83 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE • ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance • (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the Rural District and be placed in the Highway Commercial District. Section 3. That the proposal is hereby adopted and the land shall be, and hereby is removed from the Rural District and shall be included hereafter in the Highway Comnercial District, and the legal descriptions of land in each District referred to in City Code, Section 11.03, Subdivision 1, Subparagraph B, shall be, and are amended accordingly. Section 4. City Code Chapter 1, entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 11.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 5. The land shall be subject to the terms and conditions of that certain Resolution #83-218, approved and adopted by the City Council of the City of Eden Prairie on the day of , 1983, which Resolution is hereby made a part hereof. Section 6. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of ATTEST: John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of 2OlQ ROO BRUN V ICK°YE.S. LOT SURVEYS COMPANY RAYMOND O ►RASCN GOLDEN VALLEY,MINK 0I7 IDAN AVE N. MINK.REG.N MINN.0.Del LAND SURVEYORS $ROOKLYR PARK. MINK, RE6.N0.MO SSOYTSSSO UNDO LAWS Or OUTS OF lmetOOTA 12380 INVOICE NO. 7�01-73d Arc No. N0411117 F. II. NO. INDUSTRIAL—JUDICIAL MWr.e,euu.Mimwou SSJ2$ COMMERCIAL— TOPOGRAPHICAL SCALE 1" is CITY LOTS—PLATTING Ourorgarg anti/Irate 0 - DENOTES IRON BURGER KING CORPORATION Proposed description for rezoning • That part of the Southeast Quarter of the Southeast Quarter of Section 8 and of the Northeast Quarter of the Northeast Quarter of Section 17, Township 116, Range 22 described as follows: Commencing at the Northwest corner of the Northeast 1/4 of the Northeast Quarter of said Section 17; thence South 0 degrees 08 minutes 44 seconds East, assumed bearing, along the West line of said Northeast Quarter of the Northeast Quarter a distance of 271.98 feet; thence North 87 degrees 25 minutes 16 seconds East a distance of 13.17 feet to the East line of County Road No. 4 and the actual point of beginning of the tract of land to be herein described; thence North 87 degrees 25 minutes 16 seconds East 207.00 feet; thence North 2 degrees 15 minutes 15 seconds West to the inter- r section with the Southwesterly line of State Highway No. 5; thence Northwesterly along said Southwesterly line to its intersection with the Easterly line of County Road No. 4; thence Southwesterly and Southerly along said Easterly line to the actual point of beginning. • • • lot" r Cg2, W.hereby certify Met this It.tore end correct reprment.tie. .f a howl of the boundaries of IL..bove daccrib.d land..d M. location of ail buildinyr..d slilbl. .acroechemnN. if ary. from or ea.ad had. Sow*by vs SW___day of It 20 F S• LOT SURVEYS COMPANY • • CITY OF EDEN PRAIRIE • HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 42-83 AN ORDINANCE AMENDING ORDINANCE NO. 79-17 AND ADDPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, • AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE DOES ORDAIN AS FOLLOWS: Section 1. That Section 2. of Ordinance No. 79-17 is hereby amended to read as follows: "Section 2. The above described property shall be subject to the terms and conditions of that certain Developer's Agreement dated June 19, 1979, between Stewart In-Fra Red Commissary of Minnesota, Inc., and the City of Eden Prairie, and that certain Supplement to said Developer's Agreement dated , 1983, both of which are hereby made a part hereof and shall be subject to all of the ordinances, rules, and regulations of the City of Eden Prairie relating to the I-2 Park District." Section 2. City Code Chapter 1, entitled "General Provisions and Definitions Applicable to the Entire City Code, Including Penalty for Violation" and Section 11.99, entitled "Violation a Misdemeanor," are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden j Prairie on the 16th day of August, 1983, and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of 1983. i• • Wolfgang H. Penzel, Mayor ATTEST: John D. 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Pid> ;,•- :.3F r.> sc,,.'.'btSo� n � ••�'o: .FnS:.� •d wee i!-:%? e: :[:O d, i!•41:i:a: -Sn£S^4:.7^,YD$SFo:: " �> ; •C�oD e:' ": ::` �° :n Doi ^ ..�D:' ° ' " • _i; o� ^ pit .. p▪ act;!•- N4a`• .' o$ o ,`Q> n> ..e �:;^ ▪ egqg ' w P. r ` • • ,201(26 SUPPLEMENT TO DEVELOPER'S AGREEMENT BETWEEN STEWART IN-FRA RED COMMISSARY OF MINNESOTA, INC. (NOW KNOWN AS E. A. SWEEN COMPANY) AND CITY OF EDEN PRAIRIE This Supplement to Developer's Agreement made and entered into as of this — day of , 1983, by and between ' E. A. Sween Company, a Minnesota corporation, formerly known as Stewart In-Fra Red Commissary of Minnesota, Inc., a Minnesota corporation, hereinafter referred to as Sween, owners of the property as described in developer's agreement between Stewart In-Fra Red Commissary of Minnesota, Inc., a Minnesota corporation, and the City of Eden Prairie, for the property described in said agreement in Exhibit A, dated June 19, 1979, and the City of Eden Prairie, a municipal corporation, hereinafter referred to as "City;" WHEREAS, Stewart In-Fra Red Commissary of Minnesota, Inc., and City made and entered into a Developer's Agreement, dated June 19, 1979, for the property, (the "Developer's Agreement") and Sween has succeeded to all of the rights and interest in the lands included within said "Developer's Agreement;" and, WHEREAS, the parties desire to amend said agreement; NOW, THEREFORE, it is agreed by and between the parties thereto as follows: 1. The Developer's Agreement shall be and hereby is supplemented and amended in the following respects: a. Paragraph 1. shall be amended to read as follows: -1- 2011.g Owner shall develop the property in conformance with the revised material dated August 24, and August 17, 1983, reviewed and approved as amended by the City Council on August 16, 1983, and attached hereto as Exhibit B, subject to such changes and modifications as provided herein. b. Paragraph 3. is deleted. c. Paragraph 4. shall be amended to read as follows: Any parking or storage of vehicles over 3/4 ton on the property and not within an enclosed building must be screened from T.H. #5 and County Road #4 as shown on the development plan and reasonably screened from adjacent land uses. Prior to the issuance of a building permit, the Owner shall apply for and use its best efforts to obtain a variance from the provisions of the City Code to permit outside parking or storage of vehicles over 3/4 ton on the property. In the event the variance is not granted, neither the provisions of this agreement, nor the application or proceedings related to the application by the Owner to obtain the variance shall be of any effect or prejudice to any rights (i) of the Owner or claim made in any proceeding including, but not limited to, claims by the Owner that the City Code does not prohibit its use of the property relative to trucks, or that such use constitutes a nonconforming use under the City Code, (ii) or by the City in opposition to such claims. d. There shall be added paragraphs 5. and 6. as follows: 5. Prior to building permit issuance, Owner shall submit to the Director of Planning and obtain the Director's approval of a landscape/screening plan for the property, including the purposes set forth in Paragraph 4. 6. Prior to the issuance of a Certificate of Occupancy, the Owner shall submit to the City Engineer and obtain the Engineer's approval of a warranty deed for the west access road from County Road #4 to approximately 200 ft. east of County Road #4 as shown on the attached Exhibit C. The City understands that the development of the roadway is currently subject of an agreement between E. A. Sween Company, Burger Ring Corporation and Birch -2- 201 L Wood Laboratories. Said agreement provides that the roadway will be improved to City • standards and at that time all parties holding right of way will deed to the City appropriate lands. The City may, upon request of Sween, delay the receipt of the warranty deed in order to allow completion pursuant to the agreement of the parties. If the roadway is dedicated prior to final completion to City's standards, and there is a subsequent improvement and assessment by the City, E. A. Sween Company will be granted credit for the value of land dedicated toward such road project..subject to Conformance with any statutory Limitations_. 2. Sween agrees to all of the terms and conditions and accepts the obligations of the "Owner• under the Developer's Agreement, as amended and supplemented herein. WHEREFORE, the parties hereto have executed this Supplement to Developer's Agreement the day and year first above written. CITY OF EDEN PRAIRIE • ( Wolfgang H. Penzel, Mayor Carl J. Jullie, City Manager • -3- STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1983, by Wolfgang H. Penzel, the Mayor, and Carl J. Jullie, the City Manager, of the City of Eden Prairie, a municipal corporation, on behalf of the corporation. NOTARY PUBLIC E. A. SWEEN COMPANY • .-1/y Lf..— Thomas Sween, President • STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) i; I T ore•oing instrument was acknowledged by me this [Iv day of . LE ,,L, 1983, by Thomas Sween, President of E. A. Sween Company, a Minnesota corporation, on behalf of the corporation. ()01 .N1 Al .1 \AOmn4 9c, NZjARY PUBLIC r 6IJDY M.NIEMELI NOTARY PUBLIC•'MINNESOTA CARVER COUNTY NYCommhsion tons Jan 26 IM8I, x YlN. • -4- 2U16 E • EXHIBIT C • • • That part of the Northeast qu:.rter of the Northeast quarter of Section 17, Towns). r. 11/, R:mge 27.., desrrited as fellows: Per inr.ir.; of the Northwest corner of said !ort.l.a:tst :tarter of the Northeast yusrta•r; th.onc• South 'long the Weat line of soid ,or'l:ear.t eusrter of the ?'orthea.nt c::.rt: r to the forth line of the South quar- 'ter e'' skid ':ertheest qu:rt.•r of the NortNel:t :;uarter:' Vence East clong said North line rf the. South ?uertcr e! th-* Northeast ..•a.rter of the Nerth:^ect quarter to a point t.'reor.. .'is tint 1106.R feet West cf t;:•: E;at t •: et s•.id Section 17 as rees- crud s•lon,; said :.ort6! line of the South .pu.-t• r of t`. :'erthcsat evertor of the. North- •. east c,uarter, said point being the point of he inrtr.: of a lire hereirafter referred • to as ":line 0"; ther.ce forth parallel with :Aid East li:.o of Section 17 a distance of 440.17. feet, arc said "mine: A" there endii.r'; :hence: ?asterl.• to "Point X" hereinafter desrriieai; t•.••neo North 23°14'14" east 04.98 feat tore or less to the Southerly • ri,,ht-of-we;: lint• of St+:ti :r-.•c a1Cheey L , Sus descrite:S as Parcel 16 of final rertifieete recorded ;s Dor, pie, 3087;92; thence •orttwesterl.y, Northeasterly, and . Northtl:.ter',i elan s.ta r .t-cf-way 11::a :: the ':nrth fine cf rit': eortheast quar- ter of the Northeast quart Sri thence :.cat .long sal.. North line to the point of begin- ning, 1.:XCEP'T that o:rt thereof described as beginning' at said Northwest corner of th.. Northeast ::uarter of the Northeast quarter: thence Scut:: along said West line of the northeast -usrter of the Northeast quarter a oirtanco of 2(16.98 feet to the point of oe;;in'ing of a line hereinafter ra•ferred to as "Line A"; ther.'a ?last deflecting to tho left 92°26' a distance of 35C.55 feet, and said."Line A' there ending; thence at r ght angle North to the Southwesterly right-of-way lien of said State eighway No. 5; thence Northwesterly, Northeasterly, and Northwesterly alon; said right-of-way lino to said North line of the Northeast quarter of the Northeast quarter; thence :art alone said North line to the poirt of befirr.ir.g; A[SC EXCEPT that Hart thereof lying within the 7.asterent for County Road No. 4 as described in Doeu'ent !'o. 353E642; ALSO EXCEPT that Part thereof lying South of a line drawn parallel with and 35 feet South, measured at right angles, from said "Line A" and lyire West of said "Line 8" and its Northerly extension. Said "Point X" is located as follows: Commencing at a point on the Last line of the Northeast quarter of the Northeast quarter of said Section 17 distant 180 feet South of the Northeast corner thereof (said lest line being assumed to have a bearing of South); ther.ce South E8°13' West along a line parallel with the Westerly extension of the t'orth line of Section lb, Town- ship 116, Flange 22, a dirtsren of 2.0 feet; thence South 23°14'14" West a dintence of 353.30 feet more or less to a mint in a line drawn parallel with the Westerly extension of the North line of soid Section 16 from a point. on the West line of said Section 16 distant 500.40 feet South. of the Northwest corner of eatd Section 16, and distant 141.46 Poet Westerly of the Weet line of said Section 16 as measured along said Parallel line; thence South 18°10'27" West a distance of 82.52 feet along a line which if extended would intersect the North line of the South quarter of said Northeast oua^ter of the Northeast quarter of Section 17 at a point thereon distant 3( .63 feat We:t of the Fast lin^ of said Section 1^, ns measured alone said No' line cc the fauth •:u•:rter of the !'orthoart cuarter of the No-theast quarter; thence No 69°40 West a ,1i„tance of 71',A6 feet to the intersection uit.h a line drawn parallel with and dist.ent FF3.')2 feat West of the East line °f said Section 17 as saae:red along said North line of the So::.h q•u,rtnr of the Northeast ouarter of the lorthwust quarter, said point of intersection is desi,•nateci as "Point C", accoriin; to the United States Gov+rne"nt Survey thereof sr,d situ•.te ir. ::'•nnepir: (•ounty, h'innesrta. 20it.F . • • E. A. Sween CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 83-219 A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 42-83 AND ORDERING THE PUBLICATION OF SAID SUMMARY WHEREAS, Ordinance No. 42-83 was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie on the day of , 1983; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN • PRAIRIE: A. That the text of the summary of Ordinance No. 42-83, which is attached hereto, is approved, and the City Council finds that said text clearly informs the public of the intent and effect of said ordinance. B. That said text shall be published once in the Eden Prairie News in a body type no smaller than brevier or eight-point type, as defined in ' Minn. Stat. sec. 331.07. C. That a printed copy of the Ordinance shall be made available for inspection by any person during regular office hours at the office of the City Clerk and a copy of the entire text of the Ordinance shall be posted in the City Hall. D. That Ordinance No. 42-83 shall be recorded in the ordinance book, along with proof of publication required by paragraph B herein, within 2D days after said publication. . ADOPTED by the City Council on , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Frane, City Clerk The following is the full text of the City of Eden Prairie Ordinance No. 43-83, which was adopted and ordered published at a regular meeting of the City Council of the ' City of Eden Prairie on , 1983. Following the text of the Ordinance, the Developer's Agreement and Supplement to the Developer's Agreement, which is incorporated therein by Section 2 of the Ordinance, is summarized. CITY OF EDEN PRAIRIE 1. HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 42-83 • AN ORDINANCE AMENDING ORDINANCE NO. 79-17 AND ADOPTING .BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS • • THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE DOES ORDAIN AS FOLLOWS: . Section 1. That Section 2. of Ordinance No. 79-17 is hereby amended to read as follows: "Section 2. The above described property shall be subject to the terms and conditions of that certain Developer's Agreement dated June 19, 1979, between Stewart In-Fra Red Commissary of Minnesota, Inc., and the City of Eden Prairie, and that certain Supplement to said Developer's Agreement dated , 1983, both of which are hereby made a part hereof and shall be subject to all of the ordinances, rules, and regulations of the City of ( Eden Prairie relating to the I-2 Park District." Section 2. City Code Chapter 1, entitled "General Provisions and Definitions Applicable to the Entire City Code, Including Penalty for Violation" and Section 11.99, entitled "Violation a Misdemeanor," are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the 16th day of August, 1983, and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Frane, City Clerk • 201(�I� Summary of Developer's Agreement: E. A. Sween Developer will develop the land as described in Exhibit A which is attached to and incorporated in the Developer's Agreement. In addition, the Developer's Agreement provides for: 1. Submission of plans regarding sewer, water, and drainage to Engineering Department. 2. Submission to the City Engineer of a development Plan for the land. 3. Submission to Watershed District of storm sewer construction plans. Developer to follow the rules and regulations of said Watershed District. 4. Developer's warranty of title to the land. 5. Construction and maintenance of public improvements which are to be conveyed to the City as well as preservation and restoration of areas surrounding said improvements. Submission of a bond or letter of credit to ensure the quality of said construction, maintenance, preservation, and restoration. 6. Developer's commitment not to oppose rezoning if Developer fails to proceed in accordance with the Developer's Agreement within 24 months. 7. Application of the Developer's Agreement to transferees of the land. 8. City's remedies in the event that Developer violates the provisions of the Developer's Agreement. 9. Notice to the City's cable franchise. • 10. Developer shall submit to the Director of Planning, and receive the Director's approval of, a landscaping plan, with grading, site layout, plant material, type, and sizes. 11. Developer agrees to all the terms and conditions and accepts the obligations of the "Owner" under the Developer's Agreement dated June 19, 1979, as amended and supplemented herein. 12. Developer agrees that, prior to issuance of an occupancy permit, Developer shall submit a warranty deed for the west access road. • t. 13. Developer shall apply for a variance to the City for outside parking and storage of vehicles over 3/4 ton on the property. NOTICE: A printed copy of this ordinance is available for inspection by any person during regular office hours at the office of the City Clerk. ADOPTED by the Eden Prairie City Council on , 1983. John D. frane, City Clerk Wolfgang H. Penzel, Mayor • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 40-83 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND • IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the Rural District and be placed in the Commercial Regional Service District. Section 3. That the proposal is hereby adopted and the land shall be, and hereby is removed from the Rural District and shall be included hereafter in the Commercial Regional Service District, and the legal descriptions of land in each District referred to in City Code, Section 11.03, Subdivision 1, Subparagraph B, • shall be, and are amended accordingly. • Section 4. City Code Chapter 1, entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 11.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety, by reference, as though repeated verbatim herein. Section 5. The land shall be subject to the terms and conditions of that certain Resolution #83-220, approved by the City Council of the City of Eden j. Prairie, which Resolution is hereby made a part hereof. Section 6. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of ATTEST: John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA 1 RESOLUTION NO. 83-220 A RESOLUTION SETTING FORTH SPECIFIC CONDITIONS OF COUNCIL APPROVAL OF THE MENARD'S SHOPPING CENTER LOCATED WEST OF PLAZA DRIVE, NORTH OF HIGHWAY #5 BE IT RESOLVED that the proposal for a shopping center for Menard's, located west of Plaza Drive and North of Highway #5, consisting of 1.6 acres, is herein approved subject to the following specific conditions: 1. The plans revised and listed below, and attached hereto as Exhibit A, shall apply: A. Landscape plan/elevations showing park bench area, 3-sided sign, • etc., dated June 8, 1983 B. Preliminary Plat revised July 19, and August 2, 1983, showing additional berming. C. Written signage detail entitled "Exhibit C" from the Menard Plaza Shopping Center Lease. 2. Prior to building permit issuance: A. Submit detailed water, sanitary, and storm sewer plans to the Engineering Department for review and receive the Engineering Department's approval of said plans. B. Receive the approval of the Watershed District. C. Submit a landscaping/screening plan indicating the following: 1) A four-foot berm along Plaza Drive, with a six-foot wall behind the berm with the berm having additional plantings in order to screen the loading area. 2) Additional landscaping along Plaza Drive to match the landscape theme planned along the east side of Plaza Drive. D. Amend the site plan to indicate the following: 1) Extension of the sidewalk to the berm along Plaza Drive. 2) Lighting fixtures similar to those proposed on the site located on the east side of Plaza Drive shall be used at the entrances to Plaza Drive on the Menard's Shopping Center property. • • • • • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION #83-224 • RESOLUTION APPROVING THE PRELIMINARY PLAT OF EDEN PRAIRIE CENTER 4TH ADDITION FOR HOMART DEVELOPMENT CORPORATION AND TARGET BE IT RESOLVED, by the Eden Prairie City Council as follows: • That the.preliminary plat of Eden Prairie Center 4th Addition for Homart Development Corporation and Target, dated July 15, 1983, of 10.11 acres for a retail store for Target, a copy of which is on file at the City Hall, is found to be in conformance 1 with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved. ADOPTED by the Eden Prairie City Council on the day of , 1983. Wolfgang H. Penzel, Mayor ATTEST: . John D. Frane, City Clerk . 20I°1 Unapproved Planning Commission Minutes of August 22, 1983 Members Present: Acting Chairman Torjesen, Gartner, Johannes, Marhula, Schuck E. TARGET. Request for Preliminary Plat of 10.11 acres for • Feet-ITT store (Eden Prairie Center 4th Addition). Location: Eden Prairie Center Mall. A public hearing. Oale Hamilton, Suburban Engineering, representing proponents, presented the request for the preliminary plat of Eden Prairie Center 4th Addition, which would be the location of the recently approved Target store at Eden Prairie Center. Staff reviewed the recommendations of approval, including several from the previous review of the site plan for the site. Acting Chairman Torjesen asked for comments. and questions from members of the audience. There were none. MOTION 1: Motion was made by Hallett, seconded by Schuck, to close the public hearing. Motion carried--5-0-0 I. MOTION 2: Motion was made by Hallett, seconded by Schuck,to recommend to the City Council approval of the preliminary plat of Target (Eden Prairie Center 4th Addition) based on plans dated July 15, 1983, subject to the recommendations of the Staff Report of August 19, 1983. Motion carried--5-0-0 rMinnesota Department of Transportation District 5 2055 No. Lilac Drive of TO Golden Valley, Minnesota 55422. September 2, 1983 (612)545-3761 • Mr. Chris Enger Director of Planning Eden Prairie City Hall 8950 Eden Prairie Road Eden Prairie, Minnesota 55344 • S.P. 2744 T.H. 169/212 Plat review of proposed Target located in part of Lot 3, Block 1, Eden Prairie Center, Eden Prairie Hennepin County Dear Mr. Enger: We are in receipt of the above referenced plat for our review in accordance with Minnesota Statutes 505.02 and 505.03 Plats and Surveys. We find the plat acceptable for further development and do not anticipate any significant adverse affect on the existing highway. If you have any questions in regard to this review, please contact Evan Green at 545-3761 ext. 119. Thank you for your cooperation in this matter. i. . W. Cra� i ;'P.$ District Engineer r' L cc: Gerald Isaacs . Metropolitan Council Mike Reiter • Hennepin County Surveyor's Office • WMC:bn An Equal Opportunity Employs, 41110.® aua.l . STAFF REPORT TO: Planning Commission • FROM: Stephen Sullivan, Assistant City Planner TOUGH: Chris Enger, Director of Planning DATE: August 19, 1983 PROJECT: Target APPLICANT: Homart Corporation and Target, Inc. FEE OWNER: Homart Development Corporation LOCATION: Eden Prairie Center REQUEST: Preliminary Plat of 10.1 acres for a retail store Site Review • The project has previously received site plan approval. The preliminary plat was not a part of the site plan review. The proponent wishes to plat 10.1 acres west of the existing Eden Prairie Center. The development does not meet minimum lot size, side, or rear yard setbacks. The floor Area Ratio is 0.225, exceeding the 0.20 maximum allowable by City Code. The boundaries of the platted area include a major entry off Highway #169, a portion of the interior ring road, parking lot drives, and a section of parking lot #3 of the Homart property. A reciprocal easement between Target and Homart to accommodate the mutual use of one another's facilities is necessary. The proposed Target store would provide 504 parking spaces within the platted area. The total requirement for the Target store is 563 spaces. The balance of the spaces not provided on the Target parcel will have to be accommodated through the use of adjacent parking space within the Eden Prairie Center site. A revised landscape plan reflecting the conditions set forth by the City Council with the site plan approval is to be provided by the proponent. A letter of commitment to screen the truck manuevering area, if truck parking were to occur, shall also be provided to the City. The site plan does not indicate the enlargement of the northwest planting bed along the north exposure of the building. RECOMMENDATIONS Staff recommends approval of the preliminary plat for the Target development subject to the following conditions: Prior to building permit issuance, proponent shall: Qo i Target Staff Report 2 August 19, 1983 a. Provide a revised landscape plan reflecting the necessary revision set forth at the time of site plan review. b. Enlarge the northwest planting area along the north exposure of the building. c. Provide a letter of comnitment to screen the truck manuevering area, if truck parking were to occur. d. Provide a mutual use easement and agreement between Homart and Target for parking and access purposes. e. Receive approval from the Board of Appeals for Floor Area Ratio, minimum lot size, minimum zoned area, side and rear yard setback variances. • • MEMORANDUM TO:' Mayor and City Council Parks, Recreation and Natural Resources Commission THRU: Carl Jullie, City Manager • FROM: Bob Lambert, Director of Community Services — V-— . DATE: September 13, 1983 ' SUBJECT: Round Lake Park Irrigation Extension • In 1982, the City completed the installation of the irrigation system to the Round Lake Park ballfields. This system is run off a 6" well located in Round • Lake Park and is operated through an automatic time system. The summer of 1983 gave a very good test to the irrigation system, since the first of July through the end of August the summer was one of the hottest and driest on record. The ballfields remained in good condition throughout this extremely hot and dry period. The turf area that did not fair so well was the area around the new park building. This area receives the most traffic within the park due to the people coming from the beach to the concession stand and from the parking lot to the picnic area. By early August, the turf in this entire area was com- pletely brown and dormant. • . The Community Services Staff recommends that the irrigation line be 'extended from field number 1 to irrigate the turf around the park building. This would include the areas between the swimming beach and the park building and between the park building and picnic area. Staff has received a quote from Aqua City Irrigation for $4,660 and a quote from Green Keeper Lawn Sprinkler Co. for $4,980. Community Services Staff recommend that the City proceed with this irrigation pro- ject and award this project to Aqua City Irrigation for the amount of $4,660. • Staff would recommend this project be funded through cash park fees. BL:md • • • 10,U • .i. `,, 1y • • • • • • D . • / . . \\\:._ ' - • • . H \ • • . it w n . - ------ 20a5 • Propasal Pao.No. --- `\ •1 Peges AQUA CITY IRRIGATION 5428 Nicollet Avenue • Minneapolis,Minnesota • 55419 Phone 827-2871 PROPOSAL SUBMITTED TOs a"o►a, Dom 8-16-83 NAAtr. aw NAAte. City of Eden Praire Round Lake Park stein. Steen, 8950 Eden Prairie Rd Valley View Rd and Fden_Prairie Rd Clty. CITY. atAtr. Eden Prairie Eden Prairie Minnesota atAte. Minnesota We hereby submit specifications and estimates fors extending automatic irrigation system around recreation area as per_our plan E-151 _ ___ We propose to tie into existing 3" main, run 2i" piping to building and _..�_install valves and heads as shown using existing controllers for power. The valves shall be as Rain-Birds EFA 150CP valves of all brass construction with 24 volt solen'oids.The heads shall be as the existing heads which are the ___RSin7.13.1r. 4L.parl.circle_and_the itt fullS.ircle cast iron rotors with all brass_-, — --_driv3ng.mechanire. • We hereby preemie le i,n.,A lob..end ainmI —,eesehe.o ern.seere sties lb.oh*.yMiksh.e..ter'he me Si. i' Four Thousand Six Hundred Sixty and NO/100saura�4660.00 • t with pelmet yMmesh s,.e... On Completion AN..4rrl :. ewna.wd to ►• e, seesaws.All w.► N ►. .. pl...d a • .•rb..enlA. ...Me acme... S. .se.d.N p..,hwa. Aey .N.n!ie,M A..ieli.e is..•►•w.y.s.ew'ies.i..N.i.y.ern stem.w,N be....es.d IWO.e•...nn..erNn,•M step hew.en ease.abe. ewe•sd•bw•A.un•.l.. All.p..•.w",an...s..pM Web.,.•.ud.*N..d.l.y.beysad•er alnid.0.eer 10 any k..,•resb..d libel•.owns.►ea.....,..as..e.b.n ere holly...epee by Wer...s.C•seeeswlese i..ottaAt.. Mlbs.ieed$1.. ,s (,r'�!Cl/—.�«-N•Gd—..s'•.•[`. Nam lbb yrwat w be.iad».e by se e eel.,.e d law 60 • +.r. llrrrplance of Proposal The above pricer,specifications and conditions are solislactory and ore hereby accepted.You are authorised to do the work as specified.Payment will be made os outlined above. • Arrrpleb: n/'^� Signaler. Dole __— _. Signature _�� �•:....•• QREENKEEPtrN • .•• Lawn Sprinkler Co. , \ • MASTLM TORO INSTALLIM V • • •• ' • •' •• • • GREENKEEPER, I AUTOMATIC UNDERGROUND LAWN SYSTEMS • • • • • DESIGN•SALES•*isTALLATIDN•sem= • • .• • •• • ' 7491 WESTGATE LA ••!...;•,•.' EDEN PRAIRIE,MINNESO 64.14.38 .•••,..ti• i DAN LUSK �� 1 ' • 546.0436 • September 1, 1983 ' Eden Prairie City Hall $950 Eden Prairie Road Eden Prairie, MN 55344 • ATTN: Steve Calhoun RE: Addition to existing lawn sprinkler system at Round Lake Park Dear Mr Calhoun, • We propose to provide labor and material for the installation of the addition to the underground lawn irrigation system at the above mentioned project. The material for the installation will include but is not necessarily limited to: — 4 EPA 150 CP 24v electric remote control valves — 11 Rainbird #41 full circle rotor — 5 Rainbird 047 part circle rotor — 24" PVC mainline as needed All labor and material guaranteed to be free of defects for a • period of one year from the date of installation. Installed complete $4980. Payment due on completion. Accepted Date By Sincerely, Y k. Greenkeeper, Inc. 1 ' • • Automatic Underground Lawn Systems • Dosign, Salos. Installation and Service • September 20, 1983 • • CITY OF'EDEN PRAIRIE ' HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 83-223 RESOLUTION ORDERING IMPROVEMENTS AND PREPARATION OF PLANS AND SPECIFICATIONS FOR I.C. 52-035 WHEREAS, a resolution of the City Council adopted the 21 dat of June fixed the 19 day of July 19 83 as the date for a public hearing on the following proposed improvements. I.C. 52-035, Anderson Lakes Parkway Utility and Street Improvements. • • WHEREAS, ten days published notice of the Council hearing through two weekly publications of the required notice was given and the hearing was held on the 19 day of July+ at which all persons desiring to be heard were given an oppor- tunity to be heard thereon, NOW, THEREFORE, BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE: 1. Such improvement is hereby ordered as proposed in the Council resolution adopted the 20 day of September , 19 83 . 2. The City Engineer is hereby designated as the Engineer for this project and is hereby directed to prepare plans and specifications for the making of such improvement, with the assistance of B.R.W. ADOPTED by the Eden Prairie City Council on September 20, 19B3. Wolfgang H. Penael,Mayor ATTEST: SEAL John D. Frane, Clerk *(And continued to September 20, 1983) a0a7 • • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 83-225 A RESOLUTION AMENDING THE COMPREHENSIVE MUNICIPAL PLAN WHEREAS, the City of Eden Prairie has prepared and adopted the Comprehensive Municipal Plan ("Plan"); and, WHEREAS, the Plan has been submitted to the Metropolitan Council for review and comment; and, WHEREAS, the proposal of Quality Homes for development of four eight-plexes, totalling 32 units for mixed residential uses requires the amendment of the Plan; NOW, THEREFORE, BE IT RESOLVED that the City Council of Eden Prairie, Minnesota, hereby proposes the amendment of the Plan as follows: approximately four acres, located north of Anderson Lakes Parkway and east of Center Way, be modified from Church to Medium Density Residential. ADOPTED by the City Council of Eden Prairie this day of , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Frane, City Clerk SEAL 2029 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION #83-226 A RESOLUTION APPROVING THE AMENDMENT OF THE PRESERVE PLANNED UNIT DEVELOPMENT WHEREAS, the City of Eden Prairie has by virtue of City Code provided for the Planned Unit Development (PUD) of certain areas located•within the City; and, WHEREAS, the Preserve Manor Homes is considered a proper amendment to the Preserve PUD and the Comprehensive Guide Plan; and, WHEREAS, the City Planning Commission did conduct a public hearing on the Preserve Manor Homes development and considered their request for approval for development and recommended approval of the requests to the City Council; and, i WHEREAS, the City Council did consider the request on 198 ; NOW, THEREFORE, BY RESOLVED, by the City.Council of Eden Prairie, Minnesota, as follows: 1. The Preserve Manor Homes development amendment to the Preserve Planned Unit Development being in Hennepin County, Minnesota, and legally described as outlined in Exhibit A, attached hereto and made a part hereof. 2. That the City Council does grant PUD Development Amendment approval as outlined in the application material dated August 15, 1983. 3. That the PUD Development Amendment meets the recommendations of the Planning Commission dated August 22, 1983. ADOPTED by the City Council of Eden Prairie this day of , 1982. Wolfgang H. Penzel, Mayor • ATTEST: John D. Frane, City Clerk 111 • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION #83-227 • RESOLUTION APPROVING THE PRELIMINARY PLAT OF PRESERVE MANOR HOMES FOR QUALITY HOMES BE IT RESOLVED, by the Eden Prairie City Council as follows: That the preliminary plat of Preserve Manor Homes for Quality Homes, dated August 8, ( 1983, of 4.0 acres for four eight-plexes, totalling 32 units, a copy of which is on file at the City Hall, is found to be in conformance with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved. ADOPTED by the Eden Prairie City Council on the day of , 1983. Wolfgang H. Penzel, Mayor ATTEST: John D. Frane, City Clerk 2091 I` Kathleen Krueger 11160 Anderson Lakes Parkway 11208 Eden Prairie, Minnesota 55344 August 22, 1983 Eden Prairie City Offices 8950 :den Prairie Road Eden Prairie, Minnesota 55344-2499 To Whom It May Concern: Regarding the proposal to rezone the N. E. quadrant of Center Way and Anderson Lakes Parkway, I would like to point out that this neighborhood already has several multiple dwelling developments and there are plans to add more. Is there really a need for more units? Is the road system in the area adequate to handle the ever increasing amount of traffic? Yo truly Kathleen D. rueg� e r•Lfl )\ f ' ' + yr +T''` .,►.n. ..t.,..'4 ' ��•' P ' 1 \ V a, N.., i f Iti)x f •,,I, • a. cc 'If'. Ell \. ' '3 ,,,,i.027.t "(..••-: . ,,•-,s \L al °3 't .:' ` ......:::::,:•:';:.: •1;;'':::::::;;.:...1: & ." '', . y, W `�K (.\ .frik ., V4. I, � ',�..y./. pp I. g. .) ' ' lar..tn 1ug J.�.�. Y. t ImoA.11 1 ` 1� r a! O N O • !'�.. 'S1 • �J \ =•.- oaa u a�f a `)., ro x E +p'1 tN01 f. tppi>, C a ro :ElaJ++ O ap S. E•I4 f i 3 at roV p0M'1 y-0ipC L .0 1Y.,,,4)1 . Ill S. -i W.� L NfYQ� 0. aJ .VY\ t .c E.--• OT .0 0 of•.- O II • ofIin,.r C O of of O I 04,wL'CI a., CJf rmru A C I.Y- L. A 0 aaJ o cli 0. ro4... 3 ar ..I v � w M G .y o.- of v, i b aJ In �� Coo acorn SA o C cafo o of S+J +•f v ro C4 1. \i + r ul q 's s. L ul of N ` C �•+.c . I. CP t U N O f_1 d C Q c , \ �' % 0 of b0 4) ro ` ^ •j1 }' of>,I"4-- f.. of C C '_ �pC�r�\( C O N C ... m tvl Cl.° v,rY ro 1 .� ro O.•C O ali C.• ]YCV\ 0•IJ I. 0 i:•.- p LI i 7 6L1 0 V • aJ ".4/ 1 O te. C • 0. c c � � c ro�+ L. o I aJ .c • c =I cr iv ,•- a o a ata) a) m � 0: > c, o� o � i� W TJro+ c u fT C Y. CI W. Ca:: S !7W .�"N C� U .� QM V CA ro .. Ten CI C'> C9.0 • (TIC't N c V. NO ~ Off N> A E O• of [. en 1..1 a-f n C>1 of ro 7 O d N c ' p Q, `' O TJ V `\y 7 .o .� CO t_•O >dN JJ of I\ VO V, UC C C > C1. •�M 111 a�•r- N a1 •r �a+� �en c of J2 Q C at l~..';..J I.. M�,ri^V.�+ ro iA " Otl v) C wt \ 1� (V N r e 'a/ • v... " �,,,. C C 01 T p p .of • '\ ^ aJ ro Jr C:l W W L •.,. C a,•.- L O :1 i0.- , •./�•+4-Y fU 0 V. U 1 W E ti 0' ..a .-f h u 4-•••• •a. ?-..... a..., Tf I. -1 r^ Q • c[ aJ•� {' of >f7 r r':A F H.— N CJ.I U of.r U 10 yl ICI 7 1.r y .J ..A� f'.� f.f .. T n: XI-C" F.a.i of •... "a Ic.o • •C in•.-u N a il 0().RJ STAFF REPORT • TO: Planning Commission • FRDM: Stephen Sullivan, Assistant City Planner TiUGH: Chris Enger, Director of Planning DATE: August 26, 1983 PRDJECT: Preserve Manor Homes APPLICANT: Quality Homes, Inc. FEE OWNER: The Minnesota South District of the Lutheran Church-Missouri Synod LOCATION: Northeast quadrant of Anderson Lakes Parkway. and Center Way REQUESTS: 1. Guide Plan Amendment from Church to Medium Density Residential 2. Planned Unit Development Concept Amendment • 3. Planned Unit Development District Review 4. Zoning District Change from Rural to RM-2.5 5. Preliminary Platting of 4.04 acres Background The zoning is Rural and the Guide Plan depicts the parcel for a church land use. The property is a component of the Preserve Planned Unit Development, which designated the site for a church (See Figure #1 attached). The site and immediate area, as intended by the Planned Unit Development, are to be a part of the central node within the Preserve, serving a variety of housing types with a school/park site, a community recreational center, church, and neighborhood commercial uses. Land Use The proponent requests a Guide Plan change and a Planned Unit Development Amendment from a church designation to a medium density residential land use. The gross density proposed is 7.9 units per acre. The proposal should be reviewed against the following: 1. Does the Preserve need additional multiple housing? 2. Does the plan offer a good transition to other land uses? • a05U Preserve Manor Homes Staff Report 2 August 26, 1983 3. Would the change from a church land use to a medium density residential land use benefit the Preserve and the Planned Unit Development? The proposal would present no conflicts with regard to transition to adjacent land ' uses. The site has RM-2.5 to the east, west, and southeast. A park lies to the north and a recreational center to the south. Westwind, a single family detached residential development lies to the northwest. Buffering would be needed between the existing low density residential and the proposed medium density residential. These existing adjacent land uses are consistent with the intent of the "village node" concept, providing a complimentary variety of land uses, housing types, park, trails, recreation, and community facilities, centrally located within the Preserve Planned Unit Development. Eden Prairie has a population of 21,000 and currently supports twelve churches. The Preserve has a population of approximately 6,000 and no churches. Two churches have looked at the site and found that it did not meet their needs. The proponent has submitted a letter explaining this. Existing Site Character A house and barn exist within the northern portion of the site. These structures will be lost with development. The parcel slopes from the north to the south along 10-16% slopes, draining to Anderson Lakes Parkway. Vegetation on site consists mostly of elm and cottonwood trees. One 30 inch oak and three 12 inch pines exist within the central portion of the property. The elm, cottonwood, and pine trees will be lost with development. The oak is proposed to be saved, although the grading plan indicates a three-to-four foot cut adjacent to the tree. The soils are conducive to development. Ordinance Requirements The project meets or exceeds the City Code requirements for minimum lot size, lot width, front yard setback, site area per dwelling unit, floor area ratio, and maximum height of structure. The proponent wishes to subdivide the parcel into five lots. This is necessary to meet FHA requirements for minimum percentage of units being sold prior to the closing on the individual property. Based on this subdivision, variances will be needed for minimum lot depth, side yard setback, and rear yard setback. Lots 1-4 do not have direct frontage on a public road because of a small Preserve Association outlot, which is located between the proposed lots and the adjacent public roads. The developer has shown one enclosed parking space per unit. Nineteen additional parking stalls are provided off the interior private road. Since all single car garages are provided, the parking space behind the garages obstructs the garage space. Staff suggests that the spaces behind the garage be counted at the rate of one-half space each. The total number of parking spaces is 67, exceeding the Code requirement. Preserve Manor Homes Staff Report 3 August 26, 1983 A landscape plan has been submitted. Additional evergreen plant material and/or berming is needed to screen the Westwind single family development from the site. The parking areas should also be screened from the adjacent public streets. Revisions to the landscape plan are necessary. Site Plan Access to the parcel is off Center Way. A private drive will serve the four buildings. The private drive crosses a narrow strip of Preserve Association . property before linking to Center Way. The entire site will be graded. Filling up to six feet is proposed within the south portion of the site. Cuts up to seven feet are proposed within the north half of the parcel. Berms are shown at the entrance, adjacent to Prairie Lakes Condominiums and between Lots 1 and 2. The site will maintain the north to south drainage, with a majority of the storm water being collected by catch basins located at the south end of the private drive. Some off-site drainage will occur. It will be necessary to add a catch basin at the entrance to receive storm water that would drain onto Center Way. Water service ties to a main along Center Way following the private drive, then loops back to the existing main. Sanitary sewer is proposed to tie into a 15 inch sewer main, which lies adjacent to the east boundary. An eight foot bituminous trail exists along both Center Way and Anderson Lakes Parkway. Sections of eight foot wide bituminous paths exist on the site in the northwest and northeast portions of the property. A pedestrian underpass exists south of the parcel, tying the Preserve Community/Recreation Center to the adjacent properties. RECOMMENDATIONS If the Planning Commission feels the Guide Plan change and Planned Unit Development Amendment are substantiated, the Planned Unit Development District and Zoning District change, and Preliminary Plat, could be approved, subject to the following: 1. Prior to City Council review, the proponent shall: a. Revise the utility plan, placing a catch basin at the drive entrance to the property. b. Revise the landscape plan, buffering the existing Westwind development from the proposed manor homes. c. Submit detailed information regarding the treatment and preservation of the existing 30 inch oak. • 2. Prior to final plat, proponent shall: a. Receive an easement agreement from the Preserve Association allowing an access drive to the property over the existing outlot. b. Place a ten foot wide trail easement over the existing bituminous au36 Preserve Manor Homes Staff Report 4 August 26, 1983 paths, which lie within the northeast and northwest sections of the parcel. . c. Place a utility easement over the existing sanitary sewer line along the east property line. • d. Meet with the Engineering Department regarding water, sanitary and storm sewer. e. Receive Watershed District approval. k/\J 2 ' ''.)-Aries vied • it `I 1. s.....ai'u.1e«. S. l 1 / OleiWOO CO . Ad011weed: % 7 � ` s r I 1` +NW W -'' . 2 -1 _ 7,..71,-.-,-...2,:e,,,,,..\‘‘,‘ — /--- .,„., ,,..., Prt \\ FIGURE 1 ao3'1 • • CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA • RESOLUTION #83-228 RESOLUTION APPROVING THE PRELIMINARY PLAT OF MONTESSORI SCHOOL FOR RYAN CONSTRUCTION BE IT RESOLVED, by the Eden Prairie City Council as follows: ( That the preliminary plat of Montessori School for Ryan Construction, dated August 15, 1963' of 0.75 acres for a day care facility, a copy of which is on file at the City Hall, is found to be in conformance with the provisions of the Eden Prairie Zoning and Platting ordinances, and amendments thereto, and is herein approved. ADOPTED by the Eden Prairie City Council on the day of , 1983. Wolfgang H. Penzel, Mayor ATTEST: • John D. Frane, City Clerk �o�B Unapproved Planning Commission Minutes of August 22, 1983 Members Present: Acting Chairman Torjesen, Gartner, Johannes, Marhula, Schuck D. MONTESSORI SCHOOL, by Ryan Development/Hustad Development. Request for Zoning from Regional Commercial to Regional • Commercial Service and preliminary Plat of 0.75 acre for day care facility. Location: County Road #60 and Market Place Drive. A public hearing. Mr. Bob Ryan, Ryan Development, presented the request and explained the proposal as it related to the surrounding properties. Staff reviewed the recommendations of the Staff Report. Marhula stated that the grades of the parking lot were more steep than necessary and suggested lessening the grades. Mr. Ryan stated that they would do so. Acting Chairman Torjesen asked for comments and questions from members of the audience. There were none. MOTION 1: Motion was made by Marhula, seconded by Schuck, to close the public • hearing. Motion carried--5-0-0 • MOTION 2: Motion was made by Marhula, seconded by Schuck, to recommend to the City Council approval of the request of Ryan Development for a Montessori School for zoning from Regional Commercial to Regional Commercial Service, for a day care facility on 0.75 acres, based on plans and written materials dated August 15, 1983, and subject to the recommendations of the Staff Report dated August 19, 1983. Motion carried--5-0-0 MOTION 3: Motion was made by Marhula, seconded by Schuck, to recommend to the City Council approval of the request of Ryan Development for a Montessori School for preliminary plat of 0.75 acres for a day care facility, based on plans and written materials dated August 15, 1983, and subject to the recommendations of the Staff Report dated August 19, 1983. Motion carried--5-0-0 a0`39 15— DEPARTMENT OF TRANSPORTATION320 Washington Av. South Hopkins, Minnesota 55343 \• -''. HENNEPIN J ._ 935-3381 August 26, 1983 Mr. Chris Enger Director of Planning City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, Minnesota 55344 • Dear Mr. Enger: RE Proposed Plat- "Montessori School" • CSAH 39 SE Quadrant Market Place Drive Section 11, Township 116, Range 22 ' Hennepin County No. 1116 Review and Recanmendations Minnesota Statutes 505.02 and 505.03, Plats and Surveys, require County review of proposed plats abutting County roads. We reviewed the above plat and found it ac- ceptable with consideration of these conditions: -For upgrading of CSAH 39 the developer should dedicate an additional 27 feet of right of way making the right of way 60 feet frau the center of CSAH 39. -All access must be via Market Place Drive as show:. No direct access to this plat from CSAH 39 will be allowed by Hennepin County. -All proposed construction within County right of way requires an approved utility permit prior to beginning construction. This includes but is not limited to, drainage and utility construction, trail development, and landscaping. See our Maintenance Division for utility permit forms. -The developer must restore all areas disturbed during construction within County right of way. Please direct any response or questions to Les Weigelt. Sincerely, id4 „dames M. Wald, P.E. Chief, Planning and Programing JMq/LOW:pl ' HENNEPIN COUNTY on equal opportunity employer aogO STAFF REPORT • TO: Planning Commission • FROM: Stephen Sullivan, Assistant City Planner THROUGH: Chris Enger, Director of Planning DATE: August 19, 1983 PROJECT: Montessori School ' LOCATION: East of Market Place Drive, South of Valley View Road APPLICANT: Ryan Development-Hustad Development FEE OWNER: Eden Prairie Land Company II • REQUESTS: 1. Zoning District change from Regional Commercial to Regional Commercial Service 2. Preliminary plat of approximately 0.75 acres for a day care facility Background The Guide Plan depicts a Regional Commercial use for the site. The parcel is currently zoned Regional Commercial. Land Use • The property is a component of the Bryant Lake Planned Unit Development, which designates this area for office, retail, or service type land uses. The availability of an educational/day care facility would provide a retail service to the adjacent office, industrial, commercial, and residential developments. Existing Site Character The site is bordered to the north by County Road #60, to the west by Lake Ridge Office Park, to the east by a vacant five-acre parcel, and to the south by Bryant Lake Business Center. The parcel slopes at a 15% grade from the southeast to the northwest corner with a 20 ft. vertical drop. Storm water flows to a ditch section located on the south side of County Road #60, which eventually outlets to Bryant Lake. Meadow grasses cover the parcel, offering insignificant wildlife value. The soils are conducive for development. • Ordinance Requirements The project meets or exceeds the requirements for minimum lot size, lot width, lot aoul Montessori School Staff Report 2 August 19, 1983 depth, front yard setback, rear yard setback, side yard setbacks, height of structure, and Floor Area Ratio. The corner lot provision has been implemented by placing parking within one-half of the front yard setback along County Road #60. The proposal provides 23 parking spaces, which meets the needs of the Montessori School. In the event that the building is sold and additional parking is needed, the playground area would be converted to a parking lot. Staff estimates that only 6-7 additional parking stalls could be gained with the conversion. This could • accommodate the parking requirement for an office use, but not a retail use. Berms are to be located along County Road #60 to provide screening from the proposed parking area. It will be necessary for these berms to be planted with evergreen trees to completely screen the sight lines projected from County Road #60. Additional screening will be needed along Market Place Drive and south of the parking area. The ten foot green strip to the south provides a minimal amount of space to screen with evergreen trees; therefore, a fence may be necessary. The rooftop mechanical equipment is to be screened with a diagonal, slatted wood enclosure, matching the wood portions of the proposed building. No service, loading, or trash container areas are indicated. Site Plan Access to the parcel is proposed off Market Place Drive. The volume of traffic generated from the school can be handled by the surrounding road system. No public pedestrian paths are proposed. The parcel will be graded completely with an eight foot cut in the southeast and an eight foot fill in the northwest. The proposal indicates grading off-site on the vacant parcel to the south. Erosion control measures are proposed along the County Road #60 ditch section. A majority of the site drains into Market Place Drive, inletting to a catch basin 80 feet north of the access drive. Water and sanitary sewer will tie to an existing main located within the adjacent streets. The exterior material of the building is to be mostly brick, with some cedar and glass. RECOMMENDATIONS Staff recommends approval of the Montessori School request for rezoning to Regional Commercial Service and preliminary plat, subject to the following conditions: 1. Prior to Council review, proponent shall revise the site.plan indicating the location and treatment for screening of the trash receptacle area. Also, proponent shall submit a landscape/screening plan which screens all parking, loading, service, and mechanical areas. 2. Prior to final plat, proponent shall: aow2 Montessori School Staff Report 3 August 19, 1983 a. Meet with the Engineering Department with regard to water, sanitary sewer, and storm water drainage. All storm water shall be caught on-site. • 3. Prior to Building Permit issuance, proponent shall: a. Submit a letter to the City from the property owner to the south, stating approval for off-site grading on that property owner's parcel. b. Receive Watershed District approval. c. Present a signage plan consistent with City Code. d. Pay the required Cash Park Fee. • e. Meet with the Fire Marshall regarding fire safety requirements. • • ao43 SEPTEMBER 20,1983 • 9 ' VOID OUT CHECK 1050.00- 5, J HOPKINS POSTMASTER POSTAGE-DISTRICT 1 UTILITIES 240.76 9651 HOPKINS POSTMASTER POSTAGE FOR FALL BROCHURE 623.84 9652 SUPPLEES 7 HI ENTERPRISES SEPTEMBER RENT 3470.73 9653 COMMUNITY DANCE CENTER INSTRUCTOR-EXERCISE CLASSES/FEES,PAID 300.00 9654 SUPER VALU STORES INC EASEMENT-PRAIRIE CENTER DRIVE 7800.00 9655 PAUSTIS & SONS WINE 123.00 9656 GRIGGS COOPER & CO INC LIQUOR 2135.14 9657 EAGLE WINE CO WINE 274.85 9658 TWIN CITY WINE CO WINE 327.75 9659 ED PHILLIPS & SONS CO LIQUOR 3241.12 9660 JOHNSON BROTHERS WHOLESALE LIQUOR 1539.83 9661 INTERCONTINENTAL PACKAGING CO WINE 886.34 9662 OLD PEORIA COMPANY INC LIQUOR 1062.74 9663 NORTHCO LTD SEPTEMBER RENT 3371.73 9664 FIAM CONFERENCE-FIRE DEPT 75.00 9665 WAYZATA POLICE DEPARTMENT CONFERENCE-POLICE DEPT 45.00 9666 NORWEST BANK OF HOPKINS PAYROLL 9/2/83 129.00 9667 INSTY-PRINTS PRINTING-SUNBONNET DAYS FLYERS 20.05 9668 FEDERAL RESERVE BANK PAYROLL 9/2/83 16078.46 9669 COMMISSIONER OF REVENUE PAYROLL 9/2/83 9080.91 9670 AETNA LIFE INSURANCE PAYROLL 9/2/83 108.00 9671 MINNESOTA STATE RETIREMENT PAYROLL 9/2/83 65.00 9672 GREAT WEST LIFE ASSURANCE PAYROLL 9/2/83 3007.00 9673 UNITED WAY OF MINNEAPOLIS PAYROLL.9/2/83 71.50 ' 1 INTERNATIONAL UNION OF OPERATING DUES 532.00 5......, PERA PAYROLL 9/2/83 14396.26 9676 HOLIDAY INN DOWNTOWN CONFERENCE-WATER DEPT 120.84 9677 NORTH CENTRAL SECTION AWWA REGISTRATION FEE-WATER DEPT 80.00 9678 HOPKINS POSTMASTER POSTAGE 4000.00 9679 VOID OUT CHECK 0.00 9680 SANDY WERTS SUN8ONNET DAYS CHANGE FUND 100.00 96B1 OLD PEORIA COMPANY INC LIQUOR 1714.65 9682 INTERCONTINENTAL PACKAGING CO WINE 2999.41 9683 ED PHILLIPS & SONS CO LIQUOR 3505.01 9684 TWIN CITY WINE CO WINE 1007.99 9685 EAGLE WINE CO WINE 114.19 9686 JOHNSON BROTHERS WHOLESALE LIQUOR 2304.85 9687 GRIGGS COOPER & CO INC LIQUOR 3743.03 9688 WESTERN LIFE INSURANCE INSURANCE 626.36 9689 MEDCENTER HEALTH PLAN INSURANCE 3275.60 9690 BLUE CROSS INSURANCE INSURANCE 962.23 9691 PHYSICIANS HEALTH PLAN INSURANCE 9322.77 9692 NICOLLET EITEL HEALTH INSURANCE 584.15 9693 GROUP HEALTH PLAN INSURANCE 1926.56 9694 STATE OF MINNESOTA BIKE REGISTRATIONS/FEES PAID 3.00 9695 LONNIE GRAY REFUND SPECIAL ASSESSMENTS 281.64 9696 HENNEPIN COUNTY REGISTRAR OF TITL AGREEMENT REGARDING SPECIAL ASSESSMENTS 67.00 9697 HOTSY EQUIPMENT CO SWITCH-EQUIPMENT MAINTENANCE 30.00 9698 RADISSON DULUTH HOTEL EXPENSES-COMMUNITY CENTER 99.90 9 DAANE GRAMBLING REFUND-EXERCISE CLASSES 11.00 ).JO BEER WHOLESALERS INC BEER 8030.71 9701 CITY CLUB DISTRIBUTING COMPANY BEER 5486.16 I 9702 COCA COLA BOTTLING CO MIXES 839.64 9703 DAY DISTRIBUTING CO BEER 7436.39 i 12662911 9704 EAST SIDE BEVERAGE CO BEER 11776.00 9'-- KIRSCH DISTRIBUTING BEER 273.17 9. A 'J OGLE INC BEER 1652.90 9707 PEPSI-COLA BOTTLING CO MIXES 1055.90 9708 ROYAL CROWN BEVERAGE CO MIXES 29.50 9709 THORPE DISTRIBUTING COMPANY BEER 11126.05 9710 COMMISSIONER OF REVENUE AUGUST SALES TAX 10660.01 9711 ACRO-MINNESOTA INC OFFICE SUPPLIES 805.08 9712 AMERICAN LINEN SUPPLY CO MOPS-LIQUOR STORE 8.85 9713 EARL F ANDERSEN & ASSOCAITES INC STREET SIGNS 432.55 9714 APPLE VALLEY RED-E-MIX INC CONCRETE 74.63 9715 ASSOCIATED ASPHALT INC BLACKTOP 2821.62 9716 THOMAS G BLAZINA AUGUST MILEAGE-BUILDING DEPT 81.00 9717 BRYAN ENGINEERING TESTING INC -ROADK R GE Y AK 4377.95 VIEW ROAD AND PRAIRIE CENTER DRIVE 9718 BROWN PHOTO FILM PROCESSING-POLICE/FIRE & PLANNING DPT 102.59 9719 BRYAN ROCK PRODUCTS INC ROCK 4335.85 9720 BUSINESS FURNITURE INC 8 TABLES-PUBLIC WORKS BUILDING 1869.45 9721 BUTCHS BAR SUPPLY SUPPLIES-LIQUOR STORES 171.55 9722 CHAP IN PUBLISHING COMPANY LEGAL ADS 180.00 9723 CHANHASSEN BUMPER TO BUMPER _HEADS/STARTER/DISTRIBUTORU ENGINE 3378.17 CAPS/WHEEL -CYLINDER/SPARK PLUGS/BRAKE ROTOR/AIR -FILTER/FUEL HOSES/BRAKE SHOES/PLUG WIRES/ -EXHAUST/POWER STEERING FLUID/BELTS/WATER PUMP/GASKETS 1 A CHASE BRACKETT COMPANY APPRAISAL OF EDENDALE RETIREMENT-PLANNING 400.00 9725 CLUTCH & U-JOINT BURNSVILLE INC HOSES 53.97 9726 COPY EQUIPMENT INC TAPE/PAINT 235.62 9727 COUNTRY CLUB MARKET INC SUPPLIES 49.3S 9728 CAROLINE CUMMINGS SERVICE-SORT FALL BROCHURES 10.00 9729 CUTLER-MAGNER COMPANY QUICKLIME-WATER DEPT 3540.44 9730 WARD F DAHLBERG SEPTEMBER EXPENSES 80.00 9731 EUGENE DIETZ AUGUST EXPENSES 165.00 9732 DRISKILLS SUPER VALU SUPPLIES-COMMUNITY CENTER/RECREATION DEPT 425.49 9733 JOY A EASTMAN AUGUST MILEAGE 19.85 9734 MARKS EDEN PRAIRIE STANDARD ANTIFREEZE-STREET DEPT 11.90 9735 EDEN PRAIRIE TRASHTRONICS AUGUST TRASH SERVICE 280.00 9736 ELK RIVER CONCRETE PRODUCTS GRATE-DRAINAGE 99.00 9737 ELVIN SAFETY SUPPLY INC BOOTS-WATER DEPT 47.75 9738 EMERGENCY SERVICE SYSTEMS INC REWIRE BATTERY SWITCHING SYSTEM-SQUAD CARS 159.8E 9739 ENERGY-SAVING PRODUCTS CEILING FANS-PUBLIC WORKS BUILDING 250.00 9740 CHRIS ENGER AUGUST EXPENSES 165.03 9741 CURT FINCH SOFTBALL OFFICIAL/FEES PAID 12.00 9742 FARMERS STEEL CO IRON-PARK MAINTENANCE 77.00, 9743 FINLEY BROS ENTERPRISES INSTALL CRACK FILLER-ROUND LAKE TENNIS CTS 653.7E 9744 FIRESTONE STORES 6 TIRES-EQUIPMENT MAINTENANCE 742.86 9745 JAN FLYNN SUPPLIES & STORAGE CABINET-SENIOR CENTER 71.24 9746 STUART FOX CONFERENCE-FORESTRY DEPT 130.8 9747 JOHN FRAISER HOCKEY OFFICIAL/FEES PAID 36.03 "48 JOHN FRANE SEPTEMBER EXPENSES 173.C•_; ./49 G & K SERVICES TOWELS/JACKETS 93.60 9750 GLIDDEN PAINT PAINT-PARK MAINTENANCE 117.85 6331505 26u(0 9751 GLW DISTRIBUTING •SUPPLIES-LIQUOR STORES 56.58 9752 GUNNAR ELECTRIC COMPANY INC ELECTRICAL WORK-PUBLIC WORKS BUILDING 176.37 REBECCA PLOWMAN HAHN TENNIS INSTRUCTOR-FEES PAID 17.00 S_. HARMON GLASS WINDSHIELD-EQUIPMENT MAINTENANCE 164.04 9755 HENNEPIN COUNTY TREASURER TRAFFIC SIGNALS-VALLEY VEIW & COUNTY RD 4 11074.03 9756 HOPKINS DODGE SALES INC FILTERS/IGNITION SWITCH 57.44 9757 HOPKINS PARTS CO PIPE/FILTERS-EQUIPMENT MAINTENANCE 48.16 975B INGRAM EXCAVATING -HAUL DIRT-WILLOWOOD PARK/BALL PARKS/ 3236.50 • HIGH TRAIL ESTATES 9759 IRON MOUNTAIN FORGE CO 2 STEEL BIKE RACKS-PARK MAINTENANCE 571.82 9760 JUSTUS LUMBER COMPANY LUMBER-COMMUNITY CENTER 12D.90 9761 KARULF HARDWARE INC -KEYS/BATTERY CHARGER/BATTERIES/PAINT 1333.37 -BRUSHES/TAPE/SILVERWARE/LIGHT BULBS/ROPE -POTHOLDERS/BOLTS & NUTS/TARP/FUNNELS/PIPE -TAPE/MOTOR OIL/PLASTIC BAGS/WIRE/ELECTRIC PLUGS/CONNECTORS 9762 KRAEMERS HOME CENTER -VALVE/ADHESIVE/TUBING/BOARDS-NOT AVAIL- 155.37 A9763 KATHRYN A KOCHLIN MILEAGE 26.00 9764 LAKE STATE EQUIPMENT CO CLAMPS/RINGS/VALVE-PARK MAINTENANCE 573.64 9765 LAND CARE & EQUIPMENT CO 4 WHEELS-PARK MAINTENANCE 145.11 9766 LANDCO EQUIPMENT INC INSTALL NEW CENTER LINK/PINS/SEAT-FORESTRY 555.62 9767 LINHOFF COLOR PHOTO LABORATORY FILM PROCESSING-PLANNING DEPT 19.50 9768 LOGIS AUGUST SERVICE 3744.13 9769 LOWELLS AUTOMOTIVE SPECIALISTS PAINT/SANDPAPER/BODY PUTTY-P/W BUILDING 411.33 9770 LYMAN LUMBER COMPANY LUMBER-PARK MAINTENANCE 36.58 9771 DEBBY LYNGDAL EXPENSES-COMMUNITY SERVICES 25.95 ( '2 MANPOWER INC TEMPORARY HELP-PLANNING DEPT 244.00 .3 MATTS AUTO SERVICE INC TOWING SERVICES 25.00 9774 METROPOLITAN WASTE CONTROL COMMIS AUGUST SAC CHARGES 64374.75 4374.75 9775 MIDWEST ASPHALT CORPORATION BLACKTOP 16.44 9776 MINNESOTA GAS COMPANY SERVICE 9777 METRO FONE COMMUNICATIONS INC SEPTEMBER PAGER RENTAL 89.52 9778 METROPOLITAN WASTE CONTROL COMM OCTOBER SEWER SERVICE 46795.27 9779 MODERN TIRE CO WHEEL ALIGNMENT/FLOOR MATS 67.9D 9780 EARL MORE SUNBONNET DAY SIGNS 85.00 97B1 NATIONAL CHEMSEARCH CHEMICALS-WATER DEPT 832.30 6 9782 NORTHERN STATES POWER COMPANY SERVICE 3847.041 9783 NORTHWESTERN BELL TELEPHONE CO SERVICE 97B4 NORWEST BANK MINNEAPOLIS NA BDND MILEAGEAYMENT 140630.0530. 5 9785 MARK PANNKUK 9786 PATCO COMPANY 10 TRAFFIC CONES/10 LIGHTS-WATER DEPT 229.00 9787 MIKE PAUL ELECTRIC INC EMERGENCY-MODIFY WILDWELDINGWOUTLETS/INSTALL 4 1078.64 9788 W G PEARSON INC SAND-STREET DEPT 17.76 9789 CONNIE L PETERS MILEAGE 11.50 9790 PRECISION BUSINESS SYSTEMS INC REPAIR POSTAGE MACHINE-CITY HALL 48.00 9791 R & R SPECIALTIES INC SHARPEN ZAMBONI BLADES-COMMUNITY CENTER 66.50 9792 DAVID RAQUET SOCKET WRENCHES-STREET DEPT 18.70 9793 RIEKE-CARROLL-MULLER ASSOCIATES I _SERVICE-WESTWOOD ODCINDIPAND RK/HOMEWARD HHILLS S 33805.05 -RYMARLAND CAMP 3RD ADDITION/LAVONNE IND -PARK/FEASIBILITY REPORT MITCHELL ROAD/ PRAIRIE CENTER DRIVE 32458555 2Ota 9794 SAILORADS-LIQUOR STORES 27.00 KNSALENTINE NEWSPAPERS INC SANDERSHOCKEY OFFICIAL/FEES PAID 24.00 97�' WI CONFERENCE-BUILDING DEPT 10.00 9; WAYNE 9797 SATELLITE INDUSTRIES INC .D0 PORTABLE10 RESTROOMS-PARK DEPT 1185.61 9798 KEVIN W SCHMEIG CONFERENCE-BUILDING DEPT 1O.00 9799 MICHAEL SEDESKY FLOWERS-COMMUNITY SERVICES 25 9800 SHAKOPEE FORD INC -BRAKE SHOES/ALIGN FRONT END TIRES-SQUAD 98.55 CARS 7.00 9801 STEVE SINELL EXPENSES-ASSESSING DEPT 9802 W GORDON SMITH CO -GASKET/STARTER/REGULAR GASOLINE/BELTS/ 4137.00 -FUEL PUMP/COIL/SWITCH/HOSES/ANTIFREEZE/ SPARK PLUGS .1167 9803 SON OF A PRINTER INC PRINTING FOR OPEN HOUSE INVITATIONS 2 11 .67 9804 SOUTH HENNEPIN HUMAN SERVICES COU 1/2 OF 1983 FINANCIAL CONTRIBUTION 665.0 00 98D5 SOUTHWEST SUBURBAN PUBLISHING INC A CAR LIQUR STORES UO 2 EQUIPMENT MAINTENANCE 41.60 9806 STANDARD NTEIPG COMPANY SUPPLIES-LIQUOR STORE 3.74 9808 CARRIER ENTERPRISES INC 47.25 9808 CARRIE TIETZ SERVICE-PARK & RECREATION MINUTES 98D9 TURF SUPPLY COMPANY TURF BUILDER/400 BAGS FERTILIZER-PARK DEPT 9002 0.00 1 9810 TWIN CITY OXYGEN CO OXYGEN-WATER DEPT 217. 1 9811 TWIN CITY PRICING & LABEL INC LABELS-LIQUOR 218.35 5 9813 CRAIG VESSCOAIG VICK INC SOFTBALL OFFICIAL/FEES PAID 66.00 9814 JIM WALTER PAPERS XEROX PAPER-CITY HALL628.75 628. 5 9815 WATER PRODUCTS COMPANY 3-1" METERS/ONE 1-1/4" METERS 5 .50 9816 WESTERN IRRIGATION INC EQUIPMENT PARTS-PARK MAINTENANCE .46 ff 7 XEROX CORPORATION SERVICE 1 595.51 1 .8 ZIEBART AUTO RUSTPROOFING-PARK MAINTENANCE 3125.65 00 9819 FIRST STATE BANK OF CPRING SERVICE-ESERVICE-RYMARL'ANDENVALE BLVD CAMP 3RD ADDITION 19715.35 9820 G L L CONTRACTINGAI INCC SERVICE-HOMEWARD HILLS ROAD 13716.56 98212 GF F JEDLICKI INC C SERVICE-COUNTY ROAD 67 7839.88 9823 F F ARDLKNU I SERVICE-VALLEY VIEW ROAD 360298.08 9823 RI CHARD KNUTSON INC 15050.85 9824 MIDWESTNNKO PAVING & RECYCLINGI INC SERVICE-CREEKRIDSERVICE-CARDINAL 3RD ADDITION 26580.72 9826 EXCAVATINGOSR INC SERVICE-PRAIRIE CENTER DRIVE 129930.85 9826 NORTHDALE CONSTRUCTION CO SERVICE-LAVONNE INDUSTRIAL PARK 113876.9S 98278 NORTHDALE CONSTRUCTION CO SERVICE-WESTWOOD INDUSTRIAL PARK 27179.73 9829 & SONS CONSTRUCTIONNC CO SERVICE-LORENCE IST & 2ND ADDITION 49826.53 98293 ORFEI &CONTRACTING SERVICE-AUTUMN WOODS ADDITION 3136.00 9831 0 & P INC17438.67 9831 PROGRESSIVE CONTRACTORS INC SERVICE-PRAIRIE CENTERVDRI�VEITCHELL ROAD 55632.33 9832 SHAFER CONTRACTING CO INC SERVICE-PRAIRIE CENTER DRIVE 510238.93 9833 SHAFERASPHALT CONTRACTINGA CO INC 35504.53 9B345 IA PAVING MATERIALS INC -PHONEE EQUIPMENT LFOR EMERGENCY OPERATING 1035.00 9B35 AMERICAN BELL CENTER-PDLICE DEPT NOTARY FEE-POLICE DEPT 5.00 9837 MOLLYRIRD -AIR CONDITIONER COMPRESSOR REPLACEMENT 937.48 9837 BOULEVARD SHEET METAL & HTG AND REPAIR-FIRE STATION TABLES/2 FILES-P/S & P/W BUILDING 641.3C 9838 BUSINESS FURNITURE INC 13 FIRE HELMETS 962.00 9B39 CONWAYN UIBE & TAMPTC INC NOTARY STAMP-POLICE DEPT 18.15 401 CROWN RUBBER STAMP CO77.32 . s41 DALCO CLEANING SUPPLIES-POLICE DEPT 243.A5i 9842 DORHOLT PRINTING/STATIONERY INC OFFICE SUPPLIES i 141265763 aota • 9843 EDEN INN • CANINE TRAINING-POLICE DEPT 63.38 9844 EMERGENCY SERVICE SYSTEMS INC LIGHTS-POLICE DEPT 117.96 9 EMPIRE-CROWN AUTO INC EQUIPMENT PARTS-POLICE DEPT 14.07 . GENERAL COMMUNICATIONS INC EQUIPMENT REPAIRS-EQUIPMENT MAINTENANCE 118.12 9847 HEEBINK LUMBER & MILLWORK INC FORMICA FOR COMMUNICATIONS ROOM-P/S BLDG 1D9.20 9848 SHERIFFS DEPT-CTY OF HENN JUNE BOOKING FEES 126.98 9849 HENNEPIN COUNTY TREASURER JULY BOARD OF PRISONERS 2916.75 9850 CARL J JULLIE EXPENSES 36.74 9851 LESTERS REFUND-BUILDING DEPT 27.00 9852 LEEF BROS INC RUG SERVICE 391.54 9B53 MCGLYNN BAKERIES INC OPEN HOUSE REFRESHMENTS 66.62 9B54 MEDICAL OXYGEN & EQUIP CO OXYGEN-FIRE DEPT 44.33 9855 MINNESOTA VALLEY ELECTRIC CO-OP SERVICE 35.25 9B56. NORTHERN STATES POWER COMPANY SERVICE 5.00 9857 NORTHWESTERN BELL TELEPHONE CO SERVICE 395.90 9B58 TOM PETERSON SOFTBALL OFFICIAL/FEES PAID 12.00 9859 SEARS ROEBUCK & CO -8 COVERALLS/DRILL/4 DRAWER TOOL CHEST/ 2035.14 VISE/TOOLS/STOVE/REFRIGERATOR 9B60 SOUTHWEST SUBURBAN PUBLISHING INC LEGAL ADS 1042.22 9133 VOID OUT CHECK 25.00- 75332D $1934720.54 • ac,u9 September 20, 1983 1' L•EfIEF:AL 126352.42 I. CEP.TIFICATE OF IIJIEETEDIJE 163. 00 15 LIGUCR STORE P V M 54286.67 17 LIQUOR STORE PRESERVE 36535. 91 30 CASH TARE FEES 38221 56 33 UTILITY BOND FUND 21558. 44 36 PIS 6 P/W BUILDING 6OND 6121.83 43 77 FIRE DEBT FUND 60309. 40 44 UTILIT:• IEE•T FUND 80320.65 51 IMPROVEMENT CONSTRUCTION 276872. 56 57 ROAD IIIPRCVE CONST FUND 26512.70 73 WATER FUND 67 39. 72 77 'SEWER FUND 112032.17 El TRUST & ESCROW FUND 721. 22 90 TAX IIJCREMEIIT 1063E51.99 11934720 54 i . aosU SEP8 1983 Northern States Power Company MaRP September 6, 1983 Minnetonka Division 5505 County Road 19 P.O.Box 10 Excelsior,Minnesota 55331 Honorable Mayor and City Council Telephone(612)474.9881 City of Eden Prairie 8950 Eden Prairie Road - Eden Prairie, MN 55344 RE: Conversion of NSP Owned Street Lights to High Pressure Sodium Earlier this year, NSP initiated a program for conversion of all NSP owned street lights to energy efficient high pressure sodium lamps. NSP developed this program to reduce the number of inefficient street lights on its system, in line with NSP's and the national commitment to energy conservation. Because of recent reductions in the cost of high pressure sodium fixtures supplied to NSP, we are now able to make the street light conversion program even more attractive to you. This cost-reduction has occurred due to a nationwide movement toward the use of this new, efficient light source, resulting in mass production of the high pressure sodium equipment at lower { costs. Correspondingly NSP, on September 8th, is filing with the Minnesota and South Dakota Public Utilities Commissions and the North Dakota Public Service Commission a rate request to lower its rates for high pressure sodium street lights so that they are the same as those now charged for mercury street lighting of equivalent light output. We have also filed with these Commissions to eliminate the $5.00 mercury-to-high pressure sodium conversion charge. The filings also include a request that the mercury street light rate be closed and no longer be offered for new installations. After we receive the Commissions' approval, NSP will start converting NSP owned mercury, incandescent, and fluorescent street lights to new energy efficient high pressure sodium at no charge for the conversion. This means that NSP will now be updating our street lights to modern, more efficient fixtures at no additional cost to you while conserving energy at the same time. The converted lamps will use 33% to 55% less energy and provide 17% to 33% more light output than the lamps they replace, depending on lamp size. In the future, as NSP's costs of producing electric energy rise, the converted street lights should provide you savings in monthly operating costs compared to the relatively inefficient mercury units we are presently using. Because of these many advantages of high pressure sodium street lighting, NSP plans to convert the NSP owned overhead and custom underground street lights in your city to the nearest equivalent light output high pressure sodium. This will always result in slightly more light on your streets. ao51 • • • - 2 - Because this will be a large conversion program (NSP owns more than 70,000 street lights), and because of the necessity of scheduling this conversion work to match available crew time and minimize costs, NSP may not be able to make the conversion when you request it, and will have to schedule the work over several years. Any mercury street lights that require maintenance during this waiting period will be converted to high pressure sodium at no charge. • • Provided the respective commissions approve NSP's filing, NSP will begin converting NSP owned mercury, incandescent and fluorescent street lights to the high pressure sodium at no charge for the conversion, provided the conversions are made according to NSP's schedule. If conversion is desired prior to NSP's schedule, a one-time charge of $20 per light will be assessed to cover NSP's additional costs. We request your written concurrence with this program. • If you have any questions or need further information on this program, • contact Marlow E. Peterson at 474-7133 NORTHERN STATES POWER COMPANY 7eX71. Division General Manager • • ao52 POPHAM, HAIK, SCHNOBRICH, KAUFMAN & Dons LTD. 4344 IDS CENTER MINNEAPOLIS, MINNESOTA 55402 • TtLt.HONC AND It LECOPKR 6,2.333-4600 2e60►CTRO•LCWIS TOWER WAYNC G.PD HAIR THOMAS K. BROWN LEE C GILLSSHEC T TIT SEVENTEENTH STREET ROGER▪ D S HAIR THOMAS R.BERG LESLIE L LLNILATTE DENVER.COLORADO 80202 DNVRLV AUFMAN wICH EC D. ENSON R ROBERT C. OILAN TtLCPHONE AND TELEGRAM.* DENVERID COTY N JAMES R.STEILENOCK DOBLwT EOOIJIST CN 303-826.2660 DAVID S.OOTv JAMES B.LOCRHART DAVID J.EDOVIST N OSERT A.MINISH ALLEN W HINDERARER CATHERINE A.POLASRY N.W SUITE SOD P000 L 8 ROLFC A.WORO[N OLILORD M.GREENE SILVAN G....LIKENS NSWAASHINGTON,D.C.20036 G,SPRUCE ,WILLISO.WiLSN.,M RAVFMAN THONAKATHLE N RADIO TtttttOHC AND Tt LECOPICA B RULE D.WI OCSTL L.►CTCRSON RATHLCCN M.HAWTIN ,RCDCRICR S.RICHARDS MICHAEL O.FREEMAN JOHN C.CHILOS 2D2.0111-6164 G.ROBERT JOHNSON THOMAS C.O'AOUILA THERESE AMSRUSRO GARY R.MACOMBER LARRY D.E.SPEL DOUGLAS R SEATON ROBERT S BURR JANIL S.MAYCWON GARY O.BLACKtORO HUG.V.PLUNKETT.]II OAVID A.JONES SCOTT C.RICHTER • September 15, 1983 • Mr. Rick Murray B-T Land Company 1055 East Wayzata Blvd. Wayzata, MN 55391 Re: Timber Creek Wood Dear Mr. Murray: 1. Facts You have asked us to advise you concerning the validity of the possible requirement by the City of Eden Prairie that your company construct at its expense a road over existing platted right of way in a plat which is adjacent to property you are subdividing from the present point of termination in the existing plat to the border of your proposed plat. At that point, it would then join a road to be built by you in your plat which road construction within your plat is also required by the City. 2. Conclusion For the reasons stated hereinafter, it is my opinion that the City does not have the statutory power or inherent police power to require you to build this road as proposed outside of your plat. ,V.:3 • • September 15, 1983 Page 2 3. The City has only those subdivision powers which are expressly granted to it or are obviously and necessarily implied in the statute. There is no authority in this case. The City's power to require dedications and public improvements as part of the subdivision of property is derived . solely from Minnesota Statutes 5462.358. There is no authority in the statute to require off-site improvements or dedication off site. The concept of 'dedication off site is the same as off-site improvement in that both impose costs or require activities related to property the developer does not own. In fact, Subd. 2b of Minn. Stat. 5462.358 specifically restricts dedication to 'a reasonable portion of any proposed subdivision.' The entire scheme and intent of the statute is directed to on-site activities. The City should have required the developer of the adjacent plat to have built the road to the edge of that plat or the City should have escrowed funds then to pay for that future upgrading within that plat. The only Minnesota case on subdivision exactions supports your position. In Collis v. City of Bloomington, 246 N.W.2d 19 (1976), the Minnesota Supreme Court required that exactions at time of a subdivision be in proportion to the needs created by the subdivision itself and within the subdivision. The Court stated: 'A municipality could use dedication regulations to exact land or fees from a subdivider far out of proportion to the needs created by his subdivision in order to avoid imposing the burden of paying for additional services on all citizens via taxation. To tolerate this situation would be to allow an otherwise acceptable exercise of police power to become grand theft.' Moreover, I do not believe the City's ordinance even states that the City may require that an off-site improvement be constructed. On that basis alone, it is illegal. See Briar West, Inc. v. City of Lincoln, 291 N.W.2d 730 (1980) at 732, 733. 020;.3 • • • • September 15, 1983 Page 3 4. Case law in other jurisdictions supports your position. The leading case on this subject is Hylton Enterprises v. • Board of Supervisors, 258 S.E.2d 577 (1979) in which the Virginia State Supreme Court held that a local governing body may not require a developer to improve existing public highways abutting • his subdivision as a prerequisite to approving the plat. This case was cited with approval by the Nebraska Supreme Court in the case of Brian West, Inc. v. City of Lincoln, 291 N.W.2d 731 (1980) in which the court struck down a similar requirement. In a recent case of Arrowhead Dev. Co. v. Livingston County Road Comm., 327 N.W.2d 702 (1982), the Supreme Court rejected a • similar county requirement and found, moreover, that since there 'was no specific authority in the statute to require the developer to pay for off-site road improvements, none should be implied. That is the case in the Minnesota Statutes, also.( There are numerous other cases in support of the above. 5. Conclusion In conclusion, the City may not require you to upgrade a road located in the adjacent plat. Very truly yours, _ , )I• ( / Bruce D. Malkerson BDM/jf 3087j • • B-T LAND COMPANY 1055 EAST WAYZATA BOULEVARD WAYZATA, MINNESOTA 55391 1512)473-8511 September 13, 1983 • Mr. Gene Dietz City Engineer • City of Eden Prairie 8950 Eden Prairie Road Eden Prairie, MN 55343 Re: Timber Creek Wood, Eden Prairie • Dear Mr. Dietz: I appreciate your prompt and frank expression of why we should be responsible for paying for the off-site street connection of Ashby Lane to Whittington Walk in the Chatham Wood Subdivision as a condition for the platting approval of our Timber Creek Wood plat. We do not agree with your analysis that the burden for paying for this off-site road connection should be borne by our property. There are obviously many other properties involved, which not only will have direct street access from the extension, and consequently direct lateral benefit, which will have a general benefit from the installation of this road extension. Any benefit to our property would only be general in nature. The comparison of this off-site road improvement to the realignment of Duck Lake Trail is in no way the same. Your comment that we are not contributing to the realignment of Duck Lake Trail is absolutely correct and absolutely appropriate. The City has produced no evidence that any increase in traffic at the Duck Lake Trail, County Road 4 intersection would be because of our plat and mandate this upgrading of Duck Lake Trail. The Duck Lake Trail off-site improvement has general benefit to the entire community and I assume is being paid for from the community's general fund or State Aid Road Funds. The street connection of Ashby Lane to Whittington Walk has general benefit to the entire community and very specific benefit to the residents of Chatham Wood. None of this benefit is in any fashion addressed in your proposal. 1 have attached a copy of the letter I requested from our attorney's office addressing this issue of off-site improvements and how it has been treated by the courts in the past. We feel that this requirement for our property to bear the problem of building a road in another developer's project as well as all of the roads within our own site is both arbitrary and unreasonable. The only evidence that the City has set for requiring this road is that it "makes good planning sense". I do not argue that the road, as a function of planning, should be connected. I do not feel that it is appropriate for the City to request that the developer's of this property pay to complete road connections in another developer's project simply because the City forgot to have that developer install them and/or did not deem that it was "good planning" to install them at that time. I am somewhat at a loss for words to argue your position that you "understand our feeling and recognize the fact that there are other benefited properties", but still maintain the attitude that you "feel" that we should solely bear the burden of the cost of this road improvement. As you know, cities must prove benefit to any property which they plan to charge for any municipal improvement, I feel that the City would be hard-pressed to prove that we are creating the need for this connection and are the sole beneficiaries of this road connection. To date, there has been no evidence to support either case. After reviewing the proposed Developer's Agreement, we agree with all aspects of that Agreement except Paragraph 6.D., the requirement that we connect the roads in the Chatham Wood Subdivision at our sole expense. • We feel it would be much more equitable and reasonable to address the issue as part of Paragraph 6.C., as follows: 6.C. Plans showing phasing proposed for the prop- erty, indicating the termination of Phase I at the second northerly cul-de-sac until such time as the connection to Whittington Walk is completed. Should Owners require Phase II and the Whittington Walk connection prior to the time the City is ready to make said connection, the City agrees to allow Owners to make said connection and repay Owners at Owners' unit cost for the linear footage of street improvements. • From your remarks last week, I assume that the staff's position on this matter is closed, consequently, we will look forward to discussing this issue with you before the City Council. Sincerely, B-T LAND COMPANY Rick D. Murray Vice President RDM/sg enclosure cc: Mayor, Wolfgang Penzel Paul Redpath Dr. George Tangen George Bentley Richard Anderson Carl Juice, City Manager Roger Pauley, City Attorney Bruce Malkerson 1 1 .9053 ' • TO: Mayor and Members of the City Council THROUGH: Carl Jullie, City Manager FROM: Eugene A. Dietz, Director of Public Works DATE: September 14, 1983 RE: Timber Creek Ashby Lane Connection At a previous Council meeting, I was instructed to investigate the costs associated with connecting Ashby Lane between the Chatham Woods development and the proposed Timber Creek Woods development. Additionally, the developer and the staff were to attempt to negotiate the connection, if possible. After reviewing the subject, I find that the length of the road necessary to construct the interconnection would be 8B.6 feet. Based on a very rough cost estimate, it would appear that the cost of this road work would be approximately $5,000. This estimate was determined.without the use of soil borings and there could be problems that I am unaware of at this time. However, based on the very short length of the roadway, the additional expenses could not be significantly more. By way of comparison, we have determined that the cost to realign Duck Lake Trail to provide a 90° intersection with County Road 4 would be in the range of 520-30,000. We have a fairly firm alignment determined for the project, but have not completed final plans. In discussing this information with Rick Murray, I find that we are at an impasse regarding the interconnection of Ashby Lane. He feels that his firm has no responsibility for either project. As I indicated at the Council meeting previously, I disagree with that philosophy and believe that it is not unreasonable to request that the interconnection be made by B T Land and that the City of Eden Prairie perform any construction work necessary on Duck Lake Trail. The result of the discussions to date have been that the Developer's Agreement includes a clause requiring B T Land to make the interconnection on Ashby Lane. The developer disagrees with this and will present his arguments at the Council meeting for your consideration. Staff will be there to answer additional questions. EAD:sg Z63 E CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA ORDINANCE NO. 41-83 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LAND FROM ONE ZONING DISTRICT AND PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LAND IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY CODE CHAPTER 1 AND SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE, MINNESOTA, ORDAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. Section 2. That action was duly initiated proposing that the land be removed from the Rural District and be placed in the Planned Unit Development 9-83 District (hereinafter "PUD 9-83"), which includes R1-13.5 and R1-9.5 Zoning Districts. Section 3. The land shall be subject to the terms and conditions of that certain Developer's Agreement dated as of , 1983, entered into between B-T Land Company and the City of Eden Prairie (hereinafter "Developer's Agreement"). The Developer's Agreement contains the terms and conditions of PUD 9- 83, and are hereby made a part hereof. Section 4. The City Council hereby makes the following findings: A. PUD 9-83 is not in conflict with the goals of the Guide Plan of the City. B. PUD 9-83 is designed in such a manner to form a desirable and unified environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code, which are contained in PUD 9-83, are justified by the design of the development described therein. D. PUD 9-83 is of sufficient size, composition, and arrangement that its construction, marketing, and operation is feasible as a complete unit without dependence upon any subsequent unit. Section 5. ' The proposal is hereby adopted and the land shall be, and hereby is, removed from the Rural District and shall be included hereafter in the Planned Unit Development 9-83 District, and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B, shall be and are amended accordingly. Section 6. City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City .Code Including Penalty for Violation" and Section 11.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference, as though repeated verbatim herein. 2O5eF • Section 7. This Drdinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City on the day of ATTEST: .John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of . 20C 3 • • � aaaaaanaaa.sa� Oi;»="' - Rig: Eta:::::::::::: >e 3 R4a43i34Su•��•"•�'�>o" 4nn yy. O '• N0P v.....4O�Svr...� °'Ci . Mr4 ua•seeeeene 0�3yyQ=�IO eMe gam: f. •; »O_"or• 4 ........ rr r..N 1;- wt i.\.4 .. • $Sc 5<<<<i<<c>r'.c! 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R':E nr2SE ir 'e m ;,Raa • 'y . °e"e«EP° i -. hir m•.=Y:,.B«si eQo".•nzo'°-?oeE°tiN'•m> .•"B »:�1111112 a" '8m$R"'..»8�: . r..ERBga S^r7e_i 1+ 1 fir_ >§ar'e'°r3•mvo�N_ .15( =M•'E_ F.NN 1Op:$u °ii"•i"3y»r or« , .r•>r' 211 ' 4R-,r eEmr=o g e3E } r� g 33� c' Aeu+.. �o'°EE- "E to:4. y ii•Eti '_.i! r ° :tom ; oir v -)!)a g•u, a �; C y."� a " O.gs ...... ` Y'^•r ....i MZO:. l"m3o 3: =Z ..tE4t i • ,205814 Timber Creek Woods • DEVELOPER'S AGREEMENT THIS AGREEMENT, made and entered into as of , 1983, by and between B-T Land Company, a Minnesota corporation, hereinafter referred to as "Owner," and the City of Eden Prairie, a municipal corporation, hereinafter referred to as "City:" WITNESSETH: WHEREAS, Owner has applied to City for development of approximately 162 acres for rezoning from Rural to R1-13.5 and R1-9.5 and preliminary plat for 156 lots and two outlots, situated in Hennepin County, State of Minnesota, more fully described in Exhibit A, attached hereto and made a part hereof, and said entire 162 acres hereinafter referred to as "the property," and; WHEREAS, Owner desires to develop the property as 156 single family detached ( lots, on said 162 acres, based on plans dated August 2, 1983; NOW, THEREFORE, in consideration of the City adopting Ordinance #41-83 and Resolution #83-204, Owner covenants and agrees to construction upon, development, and maintenance of said property as follows: 1. Owner shall plat and develop the property in conformance with the materials dated August 2, 1983, reviewed and approved by the City Council on August 16, 1983, and attached hereto as Exhibit B, subject to such changes and modifications as provided herein. Owner shall not develop, construct upon, or maintain the property in any other respect or manner than provided herein. 2. Owner covenants and agrees to the performance and observance by Owner at such times and in such manner as provided therein of all of the terms, covenants, agreements, and conditions set forth in Exhibit C, attached hereto and made a part hereof. 3. It is the Owner's intent to dedicate the flood plain area and the wooded hill of Outlot B. concurrent with the development of the property north of the creek, as depicted on Exhibit B, provided that the overall density of Outlot B be at least consistent with the 20531 . density depicted on the Concept Plan, a copy of which is attached hereto as Exhibit D. It is understood that Owner is requesting a separate agreement that, if accepted by the City Council and executed by both parties, would specifically set forth the transfer referenced herein and the consideration given for this transfer. 4. Prior to grading permit issuance, Owner shall submit erosion control plans and information for review and receive the approval of the City Engineer of said plans. 5. Prior to building permit issuance, Owner shall submit to the • Director of Planning, and receive the Director's approval of the following: A. A development plan for Blocks 1, 2, 5, and 6, as proposed, and as depicted on Exhibit B, indicating the types of homes to be built upon each lot. Said plan shall provide for differing housing types adjacent, directly across, and diagonally across from each other. Said plan shall also provide for not more than three similar housing styles, i.e., garage front, garage side, located in a row along the same street. B. Additional housing types that fit on R1-9.5 lots, in conjunction with the development plan addressed in 5.A. above. 6. Prior to building permit issuance, Owner shall submit to the City Engineer, and receive the City Engineer's approval of the following: A. Plans showing extension of the road north of Outtot A to the west property line. Owner shalt, concurrent with construction of said road, construct a five-foot wide concrete sidewalk, to be placed on the south side of this road extension to the west property line. B. Plans showing construction of an eight-foot wide bituminous path between Lot 24, Block 5, and Lot 1, Block 7, from the sidewalk to the phasing line. The slope of the trail shall be revised to a safe grade as determined by the City for biking purposes. • C. Plans showing phasing proposed for the property, indicating the termination of Phase I at the second northerly cul-de- sac until the looped road to Chatham Woods is completed for purposes. D. Plans showing the extension of Ashby Lane into the Chatham Woods Subdivision to the west, to Whittington Walk. Owner shall be responsible for the cost of construction of the entire portion of Ashby Lane to Whittington Walk. 20551 IN WITNESS WHEREOF, the parties to this Agreement have caused these ,resents to be executed as of the day and year aforesaid. CITY OF EDEN PRAIRIE Wolfgang H. Penzel, Mayor • Carl J. Jullie, City Manager STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1983 by Wolfgang H. Penzel, the Mayor and Carl J. Jullie, the City Manager of the City of Eden Prairie, a Minnesota municipal corporation, on behalf of said corporation. Notary Public B-T LAND COMPANY Rick D. Murray, Vice President STATE OF MINNESOTA) )SS. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1983, by Rick Murray, Vice President, B-T Land Company, a Minnesota corporation, on behalf of the corporation. • Notary Public aa3'S • • • Timber Creek Woods CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 83-222 A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 41-83 AND ORDERING THE PUBLICATION OF SAID SUMMARY . WHEREAS, Ordinance No. 41-83 was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie on the day of • , 1983; • NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDEN PRAIRIE: A. That the text of the summary of Ordinance No. 41-83, which is attached hereto, is approved, and the City Council finds that said text clearly informs the public of the intent and effect of said ordinance. ' B. That said text shall be published once in the Eden Prairie News in a body type no smaller than brevier or eight-point type, as defined in Minn. Stat. sec. 331.07. C. That a printed copy of the Ordinance shall be made available for inspection by any person during regular office hours at the office of the City Clerk and a copy of the entire text of the Ordinance . shall be posted in the City Hall. D. That Ordinance No. 41-83 shall be recorded in the ordinance book, along with proof of publication required by paragraph B herein, within 20 days after said publication. ADOPTED by the City Council on , 1983. Wolfgang H. Fenzel. Mayor . ATTEST: • John 0. Frane, City Clerk aoK3 • Timber Creek Woods The following is the full text of the City of Eden Prairie Ordinance No. 41-83, which was adopted and ordered published at a regular meeting of the City Council of the City of Eden Prairie on , 1983. Following the text of the Ordinance, the Developer's Agreement, which is incorporated therein by Section 5 of the Ordinance, is summarized. CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA OROINANCE NO. 41-83 AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, REMOVING CERTAIN LANO FROM ONE ZONING DISTRICT ANO PLACING IT IN ANOTHER, AMENDING THE LEGAL DESCRIPTIONS OF LANO IN EACH DISTRICT, AND, ADOPTING BY REFERENCE CITY COOE CHAPTER 1 ANO SECTION 11.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY PROVISIONS THE CITY COUNCIL OF THE CITY OF EOEN PRAIRIE, MINNESOTA, OROAINS: Section 1. That the land which is the subject of this Ordinance (hereinafter, the "land") is legally described in Exhibit A attached hereto and made a part hereof. • Section 2. That action was duly initiated proposing that the land be removed from the Rural Oistrict and be placed in the Planned Unit Development 9-83 Oistrict (hereinafter "PUD 9-83"), which includes R1-13.5 and R1-9.5 Zoning Districts. Section 3. The land shall be subject to the terms and conditions of that certain Developer's Agreement dated as of , 1983, entered into between B-T Land Company and the City of Eden Prairie (hereinafter "Developer's Agreement"). The Developer's Agreement contains the terms and conditions of PUD 9- 83, and are hereby made a part hereof. Section 4. The City Council hereby makes the following findings: A. PUD 9-83 is not in conflict with the goals of the Guide Plan of the City. B. PUO 9-83 is designed in such a manner to form a desirable and unified environment within its own boundaries. C. The exceptions to the standard requirements of Chapters 11 and 12 of the City Code, which are contained in PUD 9-83, are justified by the design of the development described therein. D. PUD 9-83 is of sufficient size, composition, and arrangement that its construction, marketing, and operation is feasible as a complete unit without dependence upon any subsequent unit. Section 5. The proposal is hereby adopted and the land shall be, and hereby is, removed from the Rural District and shall be included hereafter in the Planned Unit Development 9-83 District, and the legal descriptions of land in each district referred to in City Code Section 11.03, subdivision 1, subparagraph B. • 2053(' shall be and are amended accordingly. Section 6. City Code Chapter I entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation" and Section 11.99 entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference, as though repeated verbatim herein. • Section 7. This Ordinance shall become effective from and after its passage and publication. FIRST READ at a regular meeting of the City Council of the City of Eden Prairie on the day of , and finally read and adopted and ordered published at a regular meeting of the City Council of said City . on the day of . ATTEST: John D. Frane, City Clerk Wolfgang H. Penzel, Mayor PUBLISHED in the Eden Prairie News on the day of . • ac)63 Summary of Developer's Agreement: Timber Creek Woods Developer will develop the land as described in Exhibit A which is attached to and incorporated in the Developer's Agreement. In addition, the Developer's Agreement provides for: 1. Submission of plans regarding sewer, water, and drainage to Engineering Department. 2. Submission to the City Engineer of a development Plan for the land. • 3. Submission to Watershed District of storm sewer construction plans. Developer to follow the rules and regulations of said Watershed District. 4. Developer's warranty of title to the land. 5. Construction and maintenance of public improvements which are to be conveyed to the City as well as preservation and restoration of areas surrounding said improvements. Submission of a bond or letter of credit to ensure the quality of said construction, maintenance, preservation, and restoration. 6. Rough grading to be performed by the Developer for improvements which the City will construct pursuant to 100% petition of all owners of the land. • Submission of a bond or letter of credit for the rough grading. 7. Payment of first three (3) years' street lighting, engineering review, and { street signs costs. 8. Developer's commitment not to oppose rezoning if Developer fails to proceed in accordance with the Developer's Agreement within 24 months. 9. Application of the Developer's Agreement to transferees of the land. 10. City's remedies in the event that Developer violates the provisions of the Developer's Agreement. 11. Notice to the City's cable franchise. 12. It is Owner's intent to dedicate the flood plain area of Outlot B and the wooded hill concurrent with development of the property north of the creek, as depicted on Exhibit 8. • 13. Owner shall submit an erosion control plan to the City Engineer, and receive the City Engineer's approval of said plan. 14. Owner shall submit a development plan for Blocks 1, 2, 5, and 6, as proposed. 15. Prior to building permit issuance, Owner shall submit to the City Engineer, and receive the City Engineer's approval of the following: a. Plans showing extension of the road north of Outlot A to the westerly property line. Concurrent with construction of said road, Owner shall construct a five-foot wide concrete sidewalk along the • south side of said road extension. b. Plans showing construction of an eight-foot wide bituminous path between Lot 24, Block 5 and Lot 1, Block 7, from the sidewalk to the phasing line. The slope of the trail shall be revised to a safe grade as determined by the City for biking purposes. c. Plans showing phasing proposed for the property, indicating the termination of Phase I at the second northerly cul-de-sac until the looped road to Chatham Woods is completed for safety purposes. d. Plans showing the extension of Ashby Lane into the Chatham Woods subdivision to the west, to Whittington Walk. Owner shall be responsible for the cost of construction of the entire portion of Ashby Lane to Whittington Walk. NOTICE. A printed copy of this ordinance is available for inspection by any person during regular office hours at the office of the City Clerk. ADOPTED by the Eden Prairie City Council on 1983. John D. Frane, City Clerk Wolfgang H. Penzel, Mayor • IG • • MEMORANDUM ( 10: Mayor and City Council FROM: City Manager Carl J. Jullie (j SUBJECT: Cable Television Rate Increase 0 finance Amendment DATE: September 16, 1983 The Southwest Suburban Cable Commission, the joint powers organization that oversees the administration of our cable television franchise, has reviewed the proposed rate increases made by Minnesota Cablesystems-Southwest, our cable operator. Eden Prairie's representatives on the Commission are Paul Redpath and myself. On August 17, 1983, the Commission held a formal public hearing with respect to the proposed rates. Testimony was received from Minnesota Cablesystems-Southwest (Minnesota) and Commission staff. The hearing process employed during this hearing and the Minutes are part of your packet. Because you, the City Council, must appropriately act to approve or deny the proposed rates, you should consult Attachment C. Standards for Review of the hearing process. These standards were carefully considered by the Commission in making its recommendations to you. You too must consider these standards during your hearings. The result of the Commission's hearing was a decision that the Commission recommend to the city councils that the proposed rates be approved and appropriate changes be made ( o the cable franchise ordinance. A resolution to this effect accompanied by supporting • finds of fact are attached. Ordinance change language, approved by the city attorneys, Commission legal counsel and the Commission itself, is included with this portion of your packet. The exhibits referenced in the findings of fact are included for your review. These exhibits were introduced as sworn testimony at the Commission's August 17, 1983 hearing. Please note that Minnesota Exhibit 2 is part of Commission Exhibit 1. Minnesota Exhibit 3 is the actual rate proposal made by Minnesota and is not included here. You received a copy of this proposal in July or August. Please bring it with you on Tuesday evening. A summary of the proposed and recommended rates shown in context with unregulated rates follows the exhibits to the findings of fact. CJJ:jp HERBST & TRUE, LTD. MEMORANDUM• TO: Operating Committee Southwest Suburban Cable Commission FROM: Adrian E. Herbst, Attorney DATE: August 4, 1983 RE: Hearing Process - Rate Change The following is a suggested process for the Commission to follow and to recommend to its member cities in review of the requested rate changes: 1. The in-depth hearing should be conducted by the Commission. This will greatly reduce the cost and time that would be incurred if each member city conducted an in-depth hearing. 2. By in-depth, I suggest a thorough hearing with testimony and,exhibits introduced under oath by the company and Commission witnesses. The witnesses would be subject to examination by each party to the proceeding, and questions from the Commission members. This process will make it possible for the Commission to have a complete record to support its recommendation to the member cities. A hearing with less formality would not likely produce a record sufficient for all cities to act upon, without further in-depth hearings, the recommendation of the Commission. 3. Record. a. A record should be made. By this, I recommend that (1) a court reporter be retained or, (2) a skilled recording secretary be used to prepare detailed minutes, and a tape recording of the hearing. The court reporter would be more expensive. b. Witnesses should be sworn. c. Exhibits marked and retained. 4. Presentations of evidence, testimony and exhibits should be made first by the company, followed by cross-examination by the Commission attorney. Presentations of evidence, testimony and exhibits of the Commission (its experts) should be made by the Commission attorney, followed by cross-examination. At the conclusion of the presentations, the company and the Commission attorney should be allowed a reasonable time to summarize. Thereafter, the Commission should close the formal part of the hearing. Thereafter, the Chairman should permit the public generally to comment. A roster should be maintained of all who speak. At the conclusion of public comments, a motion should be made to close the hearing and the Commission should then deliverate on its decision. After reaching a decision, the Commission attorney should be instructed to prepare Findings and recommendations and if necessary, based on the recommendations, a recommended ordinance. It is recommended that the company and Commission attorney notify the Commission Chairman and each other five business days before the hearing of the witnesses, exhibits and description of the anticipated testimony and description of exhibits that will be introduced at the hearing. This will help to eliminate con- fusion and problems at the hearing and help each party to prepare adequately for the hearing. 5. The Commission Chairman should preside at the hearing. The Commission attorney's associate should assist the Chairman and provide objective advice to him and members of the Commission on any decisions that have to be made about the hearing process including what testimony or exhibits may be properly heard and considered. It should be noted that the Rules of Evidence that guide the conduct of court proceedings are not applicable to this process. However, the Commission Chairman may disallow testimony and exhibits that are improper, such as hearsay. The decisions of the Chairman must be exercised with care in order to insure fairness in these proceedings even though it is not a courtroom proceeding. The Chairman should administer an oath to each witness and make sure all exhibits are properly retained. 6. Exhibits. The exhibits required of the company should be in compliance at a minimum with those specified in the franchise. A copy of the appropriate portion of the franchise ordinance is attached to this memorandum as Attachment A. 7. Notices. Notices of the hearing should comply at a minimum with the franchise ordinance. See Attachment B. 8. The location of the hearing should be at a convenient centrally located place. 9. Time. The time should be specified in the notice. The hearing may be adjourned if on the date specified, (a) the hearing cannot be completed, (b) more time is needed, or, (c) if either party desires further time to provide additional information. -2- • 10. The Findings and recommendations of the Commission and, if necessary, the recommended ordinance, should be approved and distributed to the member cities for action by each city. • At a minimum, the Findings should reflect the consideration by the Commission of the matters set out in the franchise ' ordinance applicable to rate changes. See Attachment C. 11. If any issues arise during the proceeding that require interpretation or opinion, the Commission's associate attorney shall advise the Chairman. However, the Commission attorney and company may be permitted to write or express opinions on . those matters. 12. Report to the member cities should include: a. Minutes of the hearing. b. Exhibits introduced. c. Findings and recommendations of the Commission. d. Recommended ordinance, if necessary. e. City expense record. 13. Each member city should conduct a hearing on the ordinance in the manner it desires and in conformance with the notice requirements of its ordinance and applicable law. See Attachment B. 14. The city is required to act on the application within thirty-one days after it closes its hearing. See Attachment D. 15. Commission will be responsible for coordinating accep- tance by company of each adopted ordinance. Also, Commission will collect and distribute its reimbursable costs, as well as each member city's, at time of acceptance. See Attachment E. 16. The company should be furnished with a copy of this process memorandum, as should each city. If there is no objec- tion within five days after delivery to them, the Commission Administrator and attorney should arrange for the notices and schedule the hearing. AEH:ndr Attachments -3- ATTACHMENTS A. Application Requirements B. Notice Requirements • C. Standards for Review D. Time for Action on Application .E. Reimbursable Costs NOTE: Each Exhibit is taken from sections of the Franchise Ordinance. 4 • { ATTACHMENT A H (4) 111e pzuceuu1es 6.0 De 1Vl.VMCV au wiauyaliy a aat.a or charge shall include at least the following: (a) An application for a rate change will be submitted to City and a copy filed with the Board. (b) The application shall be supported by statistical and other proof indicating that the existing rate or charge is • inadequate and unreasonable and that the proposed increases are required to enable Grantee to render service to ful- fill its obligations under this Fran- chise and 'to derive a reasonable profit therefrom. (c) The application shall include current information and financial information with at least the following: • 1. Balance sheet; • •2. Income statement; 3. Statement of sources and ap- ( plications of funds; {- 4. Detailed supporting schedules of expenses, income, assets and other items as may be re- quired by City; • • S. Statement of current and pro- • jected subscribers; 6. A current list of rates and • charges of Grantee applicable to systems owned or operated by its parent corporation or other subsidiaries or affili- ates of its parent corporation at other locations; 7. A current list of rates and charges for other systems in the seven county Metropolitan area; 8. Cash flow derived from System services since the commence- . ment of this Franchise; and { 9. Statement of tax benefits re- ceived by Grantee, its part- • • ners or shareholders, as a ! result of their investment in System: • • 46 • ATTACHMENT B is • • • } 1 • (d) City will notify Grantee and Board and schedule a public hearing on the request within two weeks from the date of receipt of the application and the deter- • • mination by City of its completeness. • . • Grantee will notify the public through providing notice for one week, each day between 7:00 p.m. and 9:00 p.m. on two channels of the date, place and time of the hearing. City will publish notice ten days prior to hearing in its official newspaper. ATTACHMENT C 4 I • D. Rate Changes. (1) No rate change shall be approved that would result in different rates or charges for service to simi-• larly situated subscribers in the rate territory, in the sole opinion of City. (2) No rate or charge change will be approved unless• • all of the standards for review have been consi- dered and evaluated and determinations have been • made, all pursuant to this Franchise. • (3) The standards for reviewing a proposed rate change will include at least the following: • • '43 . . (a) The ability of the Grantee to render • System services and to derive a reason- ! able profit therefrom under the existing rate schedule and proposed rate ached- ' ule; • . (b) The revenues and profits derived from System services; . (c) Tax benefits received by Grantee, its partners or shareholders, as the result • of their investment in the System; (d) Cash flow derived from System services; (e) The efficiency of Grantee; • (f) The quality of the service offered by • Grantee; . (g) The original cost of the System, less depreciation; • (h) A fair rate of return with respect to investments having similar risks to that of providing cable communication servi- ces; (i) The extent to which Grantee has adhered to the terms of this Franchise; (j) Fairness to residents and subscribers; (k) Capital expenditures by Grantee in pro- • viding updated technology and service to subscribers; i • (1) The extent to which Grantee has then pro- vided service to schools, hospitals, libraries, publicly owned or leased buildings and similar institutions within City; . . • (m) Such other factors as City may deem rel- evant. ATTACHMENT D • • • • • ,. i . Gs t-; (e) After closing the public hearing, City will have 31 days within which to make • its determination. Any approved change . ( in rates or charges shall become effective upon the date determined by • City. (f) If City, fails to approve the requested change or rates or charges within the 31 day period, Grantee may appeal pursuant to the then applicable procedures of the Board. • (g) City may utilize a rate consultant to advise it on proposed rate changes and • to assist it 'in maintaining uniform • • 47 • • ATTACHMENT E • • • • i • • i i • (h) All costs for the review of an applica- • tion for a rate or charge change shall be paid by Grantee upon demand of City. • The costs shall include, but not be lim • - ited to, attorneys' fees, and the reas- onable value of services (as determined • by City) rendered by City or any city employees, agents or representatives of City. • • • • • • ABSTRACT OF 17 AUGUST 1983 SOUTHWEST SUBURBAN CABLE COMMISSION • i fl. • • is J , • PUBLIC HEARING - 17 AUGUST 1983 7:00 p.m. Mr. Courtney declared the public hearing open at 7:01 p.m. Prior to starting the hearing the Commission Chairman asked the Commission Attorney to review for the public in attendance the hearing process. This was done. Also, the SOUTHWEST SUBURBAN CABLE COMMISSION MINUTES 17 AUGUST 1983 PAGE 4 Commission Attorney asked the Attorney for the company to stipulate on the record to the following: A. The company accepts the process; B. The company waives the two week time period within which a City is required to schedule a public hearing on the request; and C. The company agrees to be bound by the record and proceedings before the Commission. Mr. Popham, Attorney for the company, agreed to this stipulation, and added only that his company would provide informal presentations at the hearings before each city. MINNESOTA CABLESYSTEMS-SOUTHWEST TESTIMONY The Commission received oral testimony from Gary Mizga, Executive Vice President and Regional Manager for Minnesota. Mr. Mizga introduced the following Exhibits: A. Schedule of Oelivery of Rate Adjustment Document to Southwest Officials and B. Cablesystems-Southwest's response to the SWSCC's chart entitled "Areas of Non-Compliance with Ordinance and Offering" and C. Minnesota Cablesystems-Southwest's Rate Adjustment Proposal of June 24, 1983, with errata letter dated July 18, 1983. According to Minnesota Cablesystems-Southwest, the proposed adjustment is neces- sary because of unexpected cost increases including high interest rates, costs associated with the build for the additional miles of plant to accomodate new subdivisions which were built up between the writing of the proposal and actual build, as well as mileage not included in the original estimates, doubling of converter costs, and lower than expected revenue because of market penetration difficulties associated with gaining access to multi-unit buildings and the gen- SOUTHWEST SUBURBAN CABLE COMMISSION MINUTES 17 AUGUST 1983 PAGE 5 eral economic climate. The proposed rate adjustment, according to the proposal, would provide the follow- ing financial benefits: A. 1984 losses would decline by almost $260,000; B. 1983 losses would follow suit by $530,000; and C. An economic foundation would be provided allowing the company to raise additional financing. Mr. Mizga testified that Minnesota was aware of problems with a private easement on Oakdale Avenue in Edina, that Minnesota has been in continuous contact with residents in that area and that certain developments in St. Louis Park would now make it possible to service the Oakdale Avenue area without securing the private easement. COMMISSION STAFF TESTIMONY Mr. Ralph Campbell, III, Franchise Administrator, presented oral testimony re- garding his reports to the Comnission. The following Exhibits were introduced by Mr. Campbell: A. Rate Increase Ordinance Criteria Report; B. Financial Analysis Rate Increase Proposal; C. Cooper Associates, Inc. Technical Evaluation dated June 8, 1983. The Administrator addressed the proposed rate adjustment in light of its fairness to residents and subscribers and the extent to which Minnesota has provided ser- vice to Schools, Hospitals, Libraries, Publicly Owned or Leased Buildings and similar institutions within the Cities. The Administrator concluded that Minnesota had been substantially fair. Complaints have been relatively few compared to the high number of residents and subscribers. The Administrator's report also illustrated additional steps being taken by Minnesota to deal more SOUTHWEST SUBURBAN CABLE COMMISSION MINUTES 17 AUGUST 1983 PAGE 6 effectively and fairly with subscribers. With respect to the issue of service to public buildings and similar institutions, the Administrator reports that Minnesota stands in substantial compliance with this criterion. The Administrator's report also documented the quality of service offered by Minnesota and the extent to which Minnesota has adhered to the terms of the Fran- chise. The Administrator's report was supplemented by a performance evaluation prepared by Cooper and Associates. The areas of non-compliance were accompanied by a response from Minnesota. COMMISSION FINANCIAL CONSULTANT TESTIMONY The Commission retained the consulting firm of CTIC Associates, Inc. (CTIC) to prepare a financial analysis of the proposal. CTIC submitted its analysis, en- titled ANALYSIS OF THE PENDING RATE INCREASE PROPOSAL OF MINNESOTA CABLESYSTEMS- SOUTHWEST dated August 9, 1983. The Commission also received oral testimony from Deborah Love-Heilig of CTIC regarding the Financial Analysis prepared by CTIC. Introduced as an Exhibit at this time was the ANALYSIS OF THE PENDING RATE INCREASE PROPOSAL OF MINNESOTA CABLESYSTEMS-SOUTHWEST. The Analysis illustrates that original company forecasts showed cumulative capital expenditure at the end of fiscal 1985 a total of $27.5 Million will be invested. The original forecast for the same period was $20.1 Million. These higher costs, according to the Analysis, can be attributed to: A. More plant miles than were originally forecasted; B. Higher per mile construction costs; C. High converter costs; and D. Design changes. SOUTHWEST SUBUR8AN CABLE COMMISSION MINUTES 17 AUGUST 1983 PAGE 7 According to the Analysis, Minnesota has provided ample support for the concept that the added cost was necessary and beneficial to the system and its subscribers. • CTIC reports that the system offers profitability at this time only to the limited partners who can fully benefit from the tax savings of the losses and investment tax credits. The proposed rate increase, according to CTIC, will not immediately have any effect on system profitability. According to the Analysis, the principal benefit of the rate increase will be to hasten positive cash flow in order to en- sure that debt service or repayment can begin on schedule in 1986. CTIC concludes that it finds the proposed rate adjustment is justifiable and merited. The Commission asked Deborah Love-Heilig to review each of the standards for re- viewing a rate change request in the franchise ordinance. Ms. Love-Heilig then reviewed each of those standards. Following this testimony and questions and comments from Commission members, Mr. 8unce moved to open the hearing to the public; Mr. Rosland seconded. Approved. • (SWSCC 8.17.83-8) PUBLIC TESTIMONY There being none, Mr. Bunce moved to close the public hearing; Mr. Rosland seconded. Approved. (SWSCC 8.17.83-9) COMMISSION ACTION Mr. Redpath moved to direct staff and legal counsel to prepare findings of fact supporting a Commission recommendation to approve the rates proposed by Minnesota. Mr. Jullie seconded. Approved. (SWSCC 8.17.83-10) SOUTHWEST SUBURBAN CABLE COMMISSION `-- MINUTES 17 AUGUST 1983 PAGE 8 ADJOURNMENT Mr. Redpath moved to adjourn at 9:32 p.m.; Mr. Bunce seconded. Approved. (SWSCC 8.17.83-11). NOTICE ! THE RESOLUTION OF THE COMMISSION WITH VOTES AND CHAIRMAN COURTNEY'S SIGNATURE WILL BE MAILED TO YOU BY GARY MATZ ON TUESDAY 6 SEPTEMBER 1983. IF YOUR PACKETS NEED TO BE ASSEMBLED BEFORE YOU RECEIVE THIS SIGNED RESOLUTION. USE THE UNSIGNED COPY ENCLOSED HERE. • RESOLUTION NO. A RESOLUTION OF THE SOUTHWEST SUBURBAN CABLE COMMISSION ADOPTING FINDINGS AND RECOMMENDING CERTAIN RATE CHANGES BE APPROVED BY ITS MEMBER CITIES WHEREAS, the Southwest Suburban Cable Commission (SWSCC) is a joint powers entity organized pursuant to a Joint Powers Agreement entered into between the Cities of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield; and WHEREAS, the SWSCC has undertaken a process of reviewing cer- tain rate changes to the Franchises granted by its Member Cities to Cablesystems Southwest; and ' WHEREAS, the process of the SWSCC has included a comprehen- • sive study of the proposed rate changes, an in-depth hearing and public hearing and deliberation and review of Findings; and WHEREAS, the SWSCC desires to recommend approval of the requested rate changes and to transmit to its Member Cities for review and approval, its Findings, and a proposed Ordinance, and { the record and exhibits of its proceedings. NOW, THEREFORE, at a meeting of the SWSCC on August 24, 1983, on motion by and seconded by the following was resolved: 1. That the attached Findings and proposed Ordinance were approved. 2. That the Administrator of the SWSCC is hereby directed to transmit to the Administrator of each City, the Findings and proposed Ordinance and a record of the proceedings of the SWSCC. DATED: SOUTHWEST SUBURBAN CABLE COMMISSION By C. Wayne Courtney Its: Chairman RESOLUTION OF FINDINGS OF FACTS, AND RECOMMENDATIONS OF THE SOUTHWEST SUBURBAN CABLE COMMISSION (HEREINAFTER "COMMISSION") WHEREAS, the Commission was formed by the City Councils of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield, Minnesota (hereinafter "Parties") in May, 1982, to coordinate the admi- nistration and enforcement of the respective cable communications franchises of the Parties; to report and recommend to the Parties relative to the operation of their respective cable communications franchisees; and to perform such other duties as are required; and WHEREAS, based upon the authority granted to it pursuant to Article VII, Section 3, subdivision Q, the Commission is to advise and recommend to the Parties as to all requested rate or charge changes; obtain from the cable communications franchisees and from any other source, such information relating to rates, costs and service levels as any Party is entitled to obtain; and conduct hearings as the Commission deems appropriate; NOW, THEREFORE, BE IT RESOLVED, at a meeting of the Commission, that the Commission does hereby make the following: I. FINDINGS AND CONCLUSIONS 1. The Parties have received a request for a rate adjustment as set forth with supporting documentation and justification in a document entitled Minnesota Cablesystems-Southwest Rate Adjustment Proposal (hereinafter "Proposal") dated June 24, 1983. 2. The Commission Attorney met on Friday, July 29, 1983, with the Parties' attorneys to discuss the process for reviewing -1- the Proposal and preparing, if necessary, a franchise ordinance amendment. 3. In a memorandum to the Commission's Operating Committee and Commission dated August 4, 1983, the Commission Attorney recommended a process for the Commission to follow in preparing a recommendation on the Proposal. The process was approved by the Operating Committee and recommended to the Commission. 4. The Commission at a regular meeting on Wednesday, August 17, 1983, reviewed the proposed process and received an explana- tion of the process from the Commission Attorney. 5. The Commission received a memorandum from its Attorney dated August 17, 1983, regarding the issue of whether Minnesota has completed construction of the Initial Service Area. The ( Attorney cited Article VI, Section 4C(2) of the ordinance which states that a rate change may not be approved until two years after commencement of construction or upon completion of all construction required by Article V, Section 1, whichever is later in the opinion of the City. 6. The Attorney, in the above described memorandum, reported that an area exists on Oakdale Avenue in Edina that is not yet completed. The Attorney further reported that Minnesota's response to this area of non-compliance is that a private easement is necessary to serve that area and that dif- ficulties have arisen regarding those negotiations. 7. On August 17, 1983, at 7:00 p.m. the Commission held a public hearing, after publishing notice and by further providing -2- notice over the cable system channels as provided for in the franchises, at the City of Edina regarding the Proposal. 8. Prior to starting the hearing the Commission Chairman asked the Commission Attorney to review for the public in attendance the hearing process. This was done. Also, the Commission Attorney asked the Attorney for the company to stipu- late on the record to the following: A. The company accepts the process; 8. The company waives the two week time period within which a City, pursuant to the franchise Section 4 Subdivision D(4)(d), is required to schedule a public hearing on the request; C. The company agrees to be bound by the record and proceedings before the Commission. Mr. Popham, Attorney for the company, agreed to this stipula- tion, and added only that his company would provide informal pre- sentations at the hearings before each city. 9. The Commission received oral testimony from Gary Mizga, Executive Vice President and Regional Manager for Minnesota. Mr. Mizga introduced the following Exhibits: A. Schedule of Delivery of Rate Adjustment Document to Southwest Officials (attached hereto as Minnesota Exhibit 1); and B. Cablesystems-Southwest': response to the SWSCC's chart entitled "Areas of Non-Compliance with Ordinance and Offering" (attached hereto as Minnesota Exhibit 2); and -3- C. Minnesota Cablesystems-Southwest': Rate Adjustment proposal of June 24, 1983, with errata letter dated July 18, 1983 (attached hereto as Minnesota Exhibit 3). 10. According to Minnesota Cablesystems-Southwest (hereinafter "Minnesota") the proposed adjustment is necessary because of unexpected cost increases including high interest rates, costs associated with the build for the additional miles of plant to accomodate new subdivisions which were built up be- tween the writing of the proposal and actual build, as well as mileage not included in the original estimates, doubling of con- verter costs, and lower than expected revenue because of market penetration difficulties associated with gaining access to multi- ( unit buildings and the general economic climate. 11. According to Minnesota, at current subscriber rate levels, losses will reach $9 Million by the end of 1985. For the fiscal period just ended, almost $500,000 was lost from opera- tions. An extra $4 Million of equity has been injected in order to relieve the pressures of higher plant, equipment and interest costs. 12. The proposed rate adjustment, according to the proposal, would provide the following financial benefits: A. 1984 losses would decline by almost $260,000; B. 1983 losses would follow suit by $530,000; and C. An economic foundation would be provided allowing the company to raise additional financing. -4- 13. Mr. Mizga testified that Minnesota was aware of problems with a private easement on Oakdale Avenue in Edina, that Minnesota has been in continuous contact with residents in that area and that certain developments in St. Louis Park would now make it possible to service the Oakdale Avenue area without securing the private easement. 14. The Commission Attorney and the Commission itself were pro- vided an opportunity to question Mr. Mizga. 15. Mr. Ralph Campbell III, Franchise Administrator (hereinafter "Administrator"), presented oral testimony regarding his reports to the Commission. The following Exhibits were introduced by Mr. Campbell: A. Rate Increase Ordinance Criteria Report (attached hereto as Commission Exhibit 1); B. Financial Analysis Rate Increase Proposal (attached hereto as Commission Exhibit 2); C. Cooper Associate, Inc. Technical Evaluation dated June 8, 1983, (attached hereto as Commission Exhibit 3). 16. The Administrator addressed the proposed rate adjustment in light of its fairness to residents and subscribers and the extent to which Minnesota has provided service to Schools, Hospitals, Libraries, Publicly Owned or Leased Buildings and similar institutions within the Cities. 17. With respect to the issue of fairness to residents and subscribers, the Administrator concludes Minnesota has been fair. -5- Complaints have been relatively few compared to the high number of residents and subscribers. The Administrator's report also illustrated additional steps being taken by Minnesota to deal more effectively and fairly with subscribers. 18. With respect to the issue of service to public buildings and similar institutions, the Administrator reports that Minnesota stands in substantial compliance with this criterion. 19. The Administrator's report also documented the quality of service offered by Minnesota and the extent to which Minnesota has adhered to the terms of the Franchise. The Administrator's report was supplemented by a performance evaluation prepared by Cooper and Associates. The areas of non-compliance were accom- panied by a response from Minnesota. 20. Minnesota, the Commission Attorney and the Commission itself were provided an opportunity to question Mr. Campbell. 21. The Commission retained the consulting firm of the Cable Television Information Center (hereinafter "CTIC") to prepare a financial analysis of the proposal. CTIC submitted its analysis, entitled ANALYSIS OF THE PENDING RATE INCREASE PROPOSAL OF MINNESOTA CABLESYSTEMS-SOUTHWEST (hereinafter "Analysis"), dated August 9, 1983. 22. The Commission also received oral testimony from Deborah Love-Heilig of CTIC regarding the Financial Analysis prepared by CTIC. Introduced as an Exhibit at this time was the Analysis OF THE PENDING RATE INCREASE PROPOSAL OF MINNESOTA CABLESYSTEMS-SOUTHWEST (attached hereto as Commission Exhibit 4). -6- 23. The Analysis illustrates that original company fore- casts showed cumulative capital expenditure at the end of fiscal 1985 a total of $27.6 Million will be invested. The original forecast for the same period was $20.1 Million. 24. These higher costs, according to the Analysis, can be attributed to: A. More plant miles than were originally forecasted; B. Higher per mile construction costs; C. High converter costs; and D. Design changes. According to the Analysis, Minnesota has provided ample sup- port for the concept that the added cost was necessary and bene- ficial to the system and its subscribers. 25. CTIC states that Minnesota's original proposal assumed 690 miles of plant of which 624 miles would be aerial plant and 66 miles would be underground construction. Minnesota reports that by the end of fiscal 1983, Minnesota will have constructed 595 miles of aerial plant and 150 miles of underground plant for a total of 745 miles. To date, the average per mile cost of new plant construction for Minnesota has been close to $17,830, close to 39 percent higher. 26. CTIC also states that in its original proposal, Minnesota had planned to use Scientific Atlanta Descrambler-Converters with an estimated cost of $70 per unit. Because the Scientific Atlanta Converter was not available at the time of construction, -7- Minnesota decided to use the Zenith Z-TAC addressable converter which costs approximately $150 per unit. According to CTIC, the Z-TAC allows for many operator benefits in terms of their security and reducing signal theft but has meant an additional $3.1 Million in capital spending. 27. CTIC reports further that the decision to use Z-TAC conver- ters also required upgrading of headend equipment. Additional higher headend cost can be attributed to the addition of one earth station above the original plan of two earth stations. This provides for a greater diversity of satellite signals. 28. CTIC reports that the system offers profitability at this time only to the limited partners who can fully benefit from the tax savings of the losses and investment tax credits. The proposed rate increase, according to CTIC, will not immediately have any effect on system profitability. According to the Analy- sis, the principal benefit of the rate increase will be to hasten positive cash flow in order to ensure that debt service or repayment can begin on schedule in 1986. 29. CTIC concludes that it finds the proposed rate adjustment is justifiable and merited. 30. Minnesota, the Commission Attorney and the Commission itself were provided an opportunity to question Ms. Love-Heilig. The Commission asked Deborah Love-Heilig to review each of the standards for reviewing a rate change request in the franchise ordinance. Ms. Love-Heilig then 'reviewed each of those standards. -8- • • 31. An opportunity was provided for members of the public to comment on the proposed rate adjustment. No public comments were received. 32. Based on the foregoing, it is the Commission's finding that the proposed rate adjustment is justifiable and merited; that the standards for reviewing a proposed rate change have been considered and properly addressed; that the failure of Minnesota to wire certain areas of Oakdale Avenue in Edina are being ade- quately and timely resolved; and the members of the public have been afforded reasonable notice and an opportunity to be heard on the proposed rate adjustment. { II. RECOMMENDATIONS A. The Council should accept this report from the Commission. B. The Council should adopt the ordinance set forth allowing Minnesota to implement its rate adjustment. -9- RESOLUTION NO. 83-231 A Resolution, Relating To The Adoption of Ordinance No. 46-83 , amending Ordinance No. 80-33, Granting a Franchise to Minnesota Cablesystems-Southwest to Operate and Maintain a Cable Communication System in the City, Establishing Rates and Charges. WHEREAS, the City of Eden Prairie adopted Ordinance No. 80-33, granting a franchise to Minnesota Cablesystems-Southwest to operate and maintain a Cable Communication System in the City, and it has been proposed to amend Ordinance No. 80-33 to change the rates • and charges for various services rendered by the Grantee thereunder ("rate proposal"); and, WHEREAS, the Southwest Suburban Cable Commission ("Commission") of which the City is a member, on August 17, 1983 pursuant to authority granted to it, conducted a hearing on the proposal; and, WHEREAS, the Commission, on August 24, 1983, adopted certain Findings of Facts and Recommendations, with respect to the rate proposal; and, WHEREAS, the Commission has transmitted to the City Council an abstract of the public hearing, which it held on the matter, on August 17, 1983, together with all Exhibits received and made a part of the record in those proceedings; and, WHEREAS, the City Council has held a public hearing on the adoption of Ordinance No. 46-81 on September 20, 1983, and the record of the proceedings before the Commission was introduced and made a part of the record of such public hearing; NOW THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. Notice of the public hearing on the matter of amending Ordinance No. 80-33 by the adoption of Ordinance No. 46-83 was duly given. 2. The Findings of Facts and Recommendations of the Commission are hereby accepted. 3. Adoption of the proposed rates and charges contained in proposed Ordinance No. 46-83 would not result in different rates or charges for a service to similarly situated subscribers in the rate territory, in the opinion of this Council. 4. In considering the adoption of Ordinance No. 46-83 , amending Ordinance No. 80-33, all of the standards for review for rate and charge changes have been considered and evaluated and determinations have been made all pursuant to Ordinance No. 80-33. ADOPTED by the Eden Prairie City Council on . llolfgang H. Penzel, Mayor SEAL ATTEST: • John D. Frane, City Clerk • j.'T ORDINANCE NO. 46-83 AN ORDINANCE OF CITY OF EDEN PRAIRIE AMENDING THE CABLE COMMUNICATIONS FRANCHISE ORDINANCE NO. go.33 , EXHIBIT B, PARAGRAPH I, SUBPARAGRAPHS Al, A3, B, C, D, E AND HI AND H4 TO CHANGE THE RATES AND CHARGES FOR INSTALLATION, MONTHLY RATES, CONVERTER, RECONNECTION, EXTRA OUTLETS, COMMERCIAL RATES, FM SERVICES AND PREMIUM SERVICES AND PROVIDING FOR THE EFFECTIVE TIME OF THIS ORDINANCE. The City Council of the City of Eden Prairie ordains: SECTION 1. Ordinance No. , Exhibit B is amended to read: Subdivision 1. Paragraph I.A.1. is amended to read: } I. SUBSCRIBER NETWORK A. Basic Rates. 1. TIERS Standard 150 Ft. Aerial Seniors & Installation Monthly Homebound (First Outlet) TIER 1 Universal Service. $ 19. Free Free Converter not re- 24.95 quired for this service. TIER 2 Family Service. Subscriber owns $19.95 $ 3.95 $ 3.36 converter 24.95 Subscriber rents $ 19.95 Various Various converter from 24.95 Grantee. TIER 3 Full Service. Subscriber owns $ 19.95 6-.45 5.66 converter 24.95 6.50 5.52 Subscriber rents converter from $ 19.95. *Various *Various Grantee 24.95 -1- TIER 3 Expanded Service. (Expanded)(Included converter and unit) $ 19.95 $ 10.95 $ 9-.-31- 24.95 13.95 13.25 Subdivision 2. Paragraph I.A.3. is amended to read as follows: 3. Subscribers will have the option of renting various types of converters as follows: Grantee Converter Rate Schedule Initial Monthly Description Rate 1. Block Converter $ 44 41. OAK L-35 1.50 { 1. Ccientific Atlanta 6704 -act up converter 2 r56 3,44 remote control option 4,rO6 addre33ablc feature 3.89 (not initial-ly _c) 32. ZENITH Z-TAC A. Set-top converter 4.00 B. Set-Top Converter with remote control including remote 5.50 volume. C. Enhanced Set-Top converter with enhanced remote control in- 6.00 eluding remote volume muting, favorite channel. The rental rate shall be added to the appropriate base rate shown in the table above if the subscriber rents the converter from Grantee. Subscribers may choose to rent or buy converters from sources other than the Grantee, however, a Grantee converter or descrambler will be necessary for premium services. -2- Subdivision 3. Paragraph I.B. is amended to read as follows: B. Extra Outlets. *Installation (At time of initial Installation) Monthly TIER 1 Converter not required $i8-.46 each Free 15.00 TIER 2 Subscriber owns converter $10.00 each $1.95 each 15.00 Subscriber rents converter $19+9G each **Various 15.00 TIER 3 Subscriber owns converter $ .9A each $3.r95 each 15.00 4.95 Subscriber rents converter from Grantee $10 **Various 15.00 * Each outlet installed after the initial installation will be $19.95. $19.95 each. ** Same Converter rental option as provided for under Section IA of this Exhibit B. Subdivision 4. Paragraph I.C. is amended to read as follows: C. Reconnection. Charges for reconnection of existing installations shall be 04,95 $19.95 for each reconnection regardless of the number of outlets. Subdivision 5. Paragraph I.D. is amended to read as follows: D. Commercial Rates For Subscriber Network Services. These rates will be subject to negotiation and will depend on the number of outlets required and the type of services selected. A typical commercial rate for department store requesting 10 outlets on TIER 3 with no converters and no premium pay would be: -3- Installation (at cost on time and material basis) Monthly Rate 1st outlet $15-.00 $20.00 2nd outlet 00-.04 15.00 3rd outlet $ 5=04 10.00 Additional outlets $ 4,04 9.00 Subdivision 6. Paragraph I.E. is amended to read as follows: E. FM Rates. FM service in included in the rate otructurc3 for rates shall be $10.00 for installation and $2.50 per month. FM service shall be available only on TIER 2 and TIER 3 and not available on TIER 1. • Subdivision 7. Paragraph I.H.1. is amended to read as follows: H. Premium Services. 1. Premium service rates shall be as follows: MONTHLY Home Theatei-iicttiorkc $ 3.95 $8.95 Home Box Office 4-.38 8.95 CINEMAX 4,60 9 The Movie Channel 4,56 8.9K Showtime 4-.89 1737.7n Premiere 4-.30 8.95 HTN plus 8.9� Bravo 5 The Disney Channel 9.93 Spectrum Sports 9.95 Subdivision 8. Paragraph I.H.4. is amended tb read as follows: 4. Installation for premium services shall be free with the intital installation of TIER 2 or 3 service. Thereafter, any number of premium services added at the same time shall be added -4- at a maximum cost of $14.95 19.95. SECTION 2. Process for Adoption and Acceptance. Subdivision 1. Adoption by Other Member Cities and Cancellation. That notwithstanding any other provision of this Ordinance, if all of the Cities of Eden Prairie, Edina, Hopkins, Minnetonka and Richfield do not adopt a similar franchise Ordinance amendment then those that have may cancel the Franchise Ordinance amendment adopted by it. This right of cancellation must be exercised within thirty (30) days after all Cities have acted on a similar amendment. Subdivision 2. Time for Adoption and Acceptance. Grantee shall have thirty (30) days from the last date of adoption of a similar franchise Ordinance amendment by all of the Cities listed in Section 9 of this Ordinance, to accept this franchise Ordinance amendment in form and substance acceptable to City. However, in no event will acceptance occur later than ninety (90) days after the adoption of this franchise Ordinance amendment unless the time for acceptance is extended by City. Such accep- tance by Grantee shall be deemed the grant of this franchise Ordinance amendment for all purposes. Subdivision 3. Requirements with Acceptance. With its acceptance, Grantee also shall deliver to City an opinion from its legal counsel, acceptable to City, stating that this franchise Ordinance amendment has been duly accepted by Grantee, that the said Ordinance, as amended by this Franchise Ordinance • -5- amendment is enforceable against Grantee, and the corporations which signed the Agreement of joint and several liability dated January 9, 1981 related to the franchise granted by the said Ordinance, in accordance with its terms, and which opinion shall otherwise be in form and substance acceptable to City. Subdivision 4. Effectiveness of Ordinance. That this Ordinance shall be in full force and effect upon adoption and publication and acceptance in writing by Grantee. Passed and adopted this day of 1983. CITY OF MINNESOTA By Mayor And Manager -6- Minnesota 1 Schedule of Delivery of Minnesota Cablesystens-Soutlwest's Rate Adjustment Proposal Operating Catmittee and Cable Administrator 06/29/83 Cannissi:on Members 06/30/83 - 07/13/83 Mayors of the five cities 06/30/83 - 07/22/83 Council Members: Eden Prairie 07/26/83 - 07/29/83 Edina 07/26/83 - 08/01/83 Hopkins ' 07/27/83 - 08/18/83 Minnetonka 07/19/83 - 08/15/83 Richfield 07/28/83 - 08/16/83 • Commission 1 MEMORANDUM SOUTHWEST SUBURBAN CABLE COMMISSION TO: MEMBERS OF THE COMMISSION FROM: RALPH B. CAMPBELL, III, ADMINISTRATOR SUBJECT: RATE INCREASE ORDINANCE CRITERIA REPORT THURSDAY 11 AUGUST 1983 The Commission and City Councils,during this rate increase process, must consider the attached standards for review of the proposed rate in- crease. Items (a), (b), (c), (d), (e), (g), (h) and (k) are discussed in the financial ANALYSIS OF THE PENDING RATE INCREASE PROPOSAL OF MINNESOTA CABLE- SYSTEMS-SOUTHWEST which is included in your packets. Items (f) and (i) are covered in the AREAS OF NON-COMPLIANCE WITH ORDIN- ANCE & OFFERING report, along with Cabiesystem's responses. Staff's opinion is that Cablesystems responses to items cited in this report have adequately addressed these concerns. Staff will follow up to insure compliance dates are enforced. Items (j) and (1) are discussed below: (j) Fairness to Residents and Subscribers: Minnesota Cablesystems-Southwest has been fair to residents and to subscribers. While there have been complaints, both to the company and the Commission, these have been relatively few compared to the high number of subscribers (26,000) and residents (155,000). The Commission receives an average of two complaints a day, most of which are referred to the company, which apparently takes care of them due to the low number of recalls from complainants. Most complaints received and acted upon by the Commission have to do with: 1) Confusion over billing practices 2 Confusion over marketing programs and offers 3) Questions about availability of cable service (When will I get cable?) 4) Program content To deal with these complaints and provide for fairness to subscribers and residents, Cablesystems: 1) Has designed a new billing process involving an entirely new billing computer, that will, according to the company, greatly reduce this confusion and provide for smoother billing cycling. This new system will be in place late this year. 2) Undertaken extensive marketing research involving focus groups and other surveying techniques to determine more effective ways to explain and sell cable services. In addition, Cablesystems will soon hire a professional marketing manager to head its marketing department. 3) Has aggressively completed building over 99 percent of the initial service area and continues to aggressively develop the remaining portions as recently defined by the new line extnesion policy. The company's management staff responsible for this construction has personally met with individuals and neighborhood groups to facili- tate communication and proper construction of the system. 4) Provides explanations to individuals with respect to the company's rights to provide its programming and offers to install lockout devices (at no charge) to those who object to certain programs. This is done personally by senior programming and administrative • managers. • Cablesystems' present and proposed rates are, for the most part, signifi- cantly lower than those of other operating Twin Cities area cable systems. Some local systems that have not been built do have .lower initial rates than those proposed by Cablesystems. But these rates can be expected to increase by higher percentages than ours due to the relatively long time periods that have elapsed since these systems were designed and financial projections ap- plied. Cablesystems has clearly provided the highest level of local programming support in this area. Subscribers to the Southwest system enjoy more quantity and diversity of local programming than any others in this metropolitan area. (1) The Extent to Which Grantee has Provided Service to Schools, Hospitals, Libraries, Publicly Owned or Leased Buildings and Similar Institutions within the Cities: Cablesystems stands in substantial compliance with this criterion. All City Halls, schools, Public Safety Centers and libraries have been I= or will soon be connected to the -residential network. Some fire stations, �- public works departments, community centers, libraries, other publicly owned buildings and facilities and the hospital will be included in the negotiations for connections to the proposed institutional network which will be intercon- nected with the residential network. • A F C t-1AN3GE STAk)O2oS oc' 2EV E(j D. Rate Changes. (1) No rate change shall be approved that would result in different rates or charges for service to similarly situated subscribers in the rate territory, in the sole opinion of City. ( (2) No rate or charge change will be approved unless all of the stan- dards for review have been considered and evaluated and determin- ations have been made, all pursuant to this Franchise. (3) The standards for reviewing a proposed rate change will include at least the following: (a) The ability of the Grantee to render System services ( and to derive a reasonable profit therefrom under the existing rate schedule and proposed rate schedule; . 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'O W < n.• a M nO A 00A (fWa7a CO no 7a ar 0 0 0 n0 I '..•a • a7 • OW C n 7 0 n .•••n a A M n a 7 0 a 1... r .. < ra 7 n n 6 a t 6 W n n .y a a n n c00 0 A .. 0 S w n w ..n oan . . c n C C. s 0 ..•n a *0 OC n [ r 4 O0- S n C 2 a a n 7 g 0 41 1n< Mr7 .• D.n 0 7 O•a0 1+4. 7 SMrWnAAn +7aYa C On• i 00 m4 nn9n.7 nn 4. sr i. a 0 n 0 a O r I..O AO F nU A 4pX 'cO n A .0 r9 .. ..a H DappmAASOnApaG.6nr5 a .1a n7 oM W a Cn S go .m7 naA Sa a.. 0Ca nOA . I A < ar ...a ......a. am a 7O r ,AOn7 • 0 MMGay 7O' 77 Oa .n . 10 • asgpp 2.4 M • 2•a672'7C0 . ro S a n a n a. .n a F 7 N rC0. 0700aSPcOn xr a no rO 'a .- • .'r••7 n n M nr n S% na aSr• ~Ms am2.aA7a. a A'0 AnO 0.4 g 0.a n A QPp H9n AO nnna•0a . O .- a n 7 to < o an" .n rg 4 4 IA pa ii A Commission 2 MEMORANDUM SOUTHWEST SUBURBAN CABLE COMMISSION TO: MEMBERS OF THE COMMISSION FROM: RALPH B. CAMPBELL, III, ADMINISTRATOR SUBJECT: FINANCIAL ANALYSIS OF RATE INCREASE PROPOSAL THURSDAY 11 AUGUST 1983 Attached is the financial Analysis of the Pending Rate Increase Proposal of Minnesota Cablesystems-Southwest done by CTIC Associates as part of the Commission's rate increase review process. CTIC's conclusions (last page, copied in pink, of the Analysis) indicates: 1) Minnesota Cablesystems-Southwests' (MCS) rate increase "proposal is de- tailed and its facts have been substantiated with audited statement"; 2) "(T)he proposed increase ...will cause an increase of 17.6 percent* on the average subscriber's bill of services"; and 3)"(T)he currently proposed rate increase is justifiable and merited" ( Although CTIC challenges some of MCS's claims, CTIC's bottom line is that the increased rates are appropriate. According to the Analysis, the primary goal of this rate increase appears to be to reduce projected losses and minimize the need for debt capital. Cablesystems has been losing money on their operations in the Southwest, but these losses were expected. Cablesystems presumed a cumulative net loss would occur at this point in time in its operations. CTIC points out that it is normal to ex- perience no positive cash flow until the third of fourth years, and positive net income left unrealized until the sixth or seventh year of operations (pages IV 1 & 2). CTIC also points out that Cablesystems' local investors are earning returns through tax savingsderived from allocation of system losses and investment tax credits (pages IV 2 - 6). CTIC's summary on page III - 12 highlights the overall revenue and expenses picture pointing out the effects of the proposed rate increase. Staff recommends that the Commission: 1) Encourage development of the interactive and institutional network services to address CTIC's comments made in paragraph 2, page III-4; 2) Determine the reasons for the low income derived from sale of adver- tising time (paragraph 3, page III-4); 3) Encourage CSW to take steps to reduce its relatively' high level of bad debt expense (paragraph 2, page III-6); 4) Request an ennumeration of the services received from Minnesota Cablesystems, Incorporated, in return for the 5% gross revenue management fee (paragraph 3, page III-6); and, 5) Receive from CSW a report reprojecting future incomes, expenses, • and rate increases to address CT1C's comment in the last sentence of paragraph 2, page V. These items should not be made part of the rate increase process, but rather, pursued after the process. * Note should be taken that this represents an 8.8 percent per year increase when - spread over the time from the date the system began serving subscribers, November. 1981, tO the projected date when the rate increase, if approved, takes affect, November 1983. • • • Commission 3 I � f \ I SOUTHWEST SUBURBAN CABLE COMMISSION REPORT ON TECHNICAL EVALUATION IMINNESOTA CABLE SYSTEMS SOUTHWEST I V • I - • Cooper Associates, Inc. June 8, 1983 • -, • INTRODUCTION Cooper Associates, Inc. (Cooper) was employed by the Southwest Suburban Cable Commission (SWSCC) to provide technical advisory services regarding the cable television system serving the franchised area. These services encompassed a technical evaluation of Minnesota Cable Systems Southwest, with regard to their compliance with the franchise and Proposal that was submitted to the Commission. While there may exist areas of non-compliance relative to the technical aspects of the Company's Proposal, the Commission should be aware that viable alternatives may have been implemented by the Company. Our investigation included two and one-half days of field work, which represents sufficient time to perform a general technical audit. Our evaluation is divided into two parts. The first part is a point-by-point discussion of the RFP technical section and the Company's Proposal noting whatever non-compliance items had occurred to date. The Company advised us that they had prepared a comprehensive report that has been submitted to the City, which also outlined areas of non-compliance. The second part of this report consists of an overall evaluation of the system design consisting of an evaluation of the Company's FCC Compliance testing. 1 SECTION I. EVALUATION OF TECHNICAL COMPLIANCE Our analysis of the technical aspects of the franchise and Company Proposal consisted of a review of all pertinent documents and discussions with Company representatives. Through our analysis the following discrepancies between the RFP response • (Proposal) and the present physical condition of the cable system were discovered. A) There is presently no system interconnection between the cable system and other surrounding cable systems. The Company advised us that there will be no plans made for interconnection until the Minnesota State Cable Board outlines its preferences. B) The Company is using Zenith addressable converters for all of its subscribers instead of t•he Scientific Atlanta converters as proposed. C) There are no addressable taps in the system as proposed in the RFP. D) The Company is using Belden 9118 and 9119 RG-6 drop cable rather than Amphenol as proposed. E) The levels of service that do not require converters have fewer than 200 subscribers. The remaining 26,000 subscribers all have converters. F) The Company has installed three Scientific Atlanta TYRO satellite receivers rather than two as proposed, and has installed tunable satellite receivers rather than fixed. 2 G) The scrambling being utilized is the Zenith inverted video suppressed sync design rather than the Scientific Atlanta approach which is described in the Form I, Item 6 of the RFP response. R) The FM service is not trapped externally which may account for the fact that there are only 195 FM subscribers out of 26,000 cable subscribers. Any person splitting the incoming cable signal to his FM system is able to obtain the FM service, thereby saving $1.95 per month. I) The Company actually installed a 60-foot tower instead of a 100-foot tower as proposed to receive its off-air signals. J) The off-air signals are processed at IF frequency only • and are not switchable as video signals. ( K) There is no security system presently installed pursuant to paragraph 8 of the RFP response. The Company is conducting some experiments elsewhere, but presently has no plans for installing such security systems. L) The cable amplifiers as installed presently do not have upstream capability and, therefore, do not presently have status monitoring as listed in paragraph 10 of the RFP response. The Company plans to have status monitoring on the system within one year. M) The emergency alert system was tested by us. In addition, there is a letter included in Appendix A showing actual tests that have been done at various locations. The emergency override does not override the FM channels. 3 N) The standby generator at the headend is fueled by natural gas rather than a fuel tank as listed in paragraph 12 of the RFP response. 0) The video character generator used by the Company is in a non-standard television format and, therefore, cannot be processed by a timebase corrector or a video processing amp. p) There is no institutional network as listed in paragraph 15 of the RFP response, and the Company presently has no plans for installing an institutional network. Q) The Company presently has two channels of common carrier microwave, feeding it a weather and financial channel. These channels will be replaced by a two-channel AML system. R) All amplifiers in the hub interconnection trunks are spaced at 300 MHz instead of 300 and 402 MHz as listed in paragraph 16.A.2. S) The headend is capable of having all of the channels harmonically related, but currently this is not implemented as shown in the headend diagram. The two most important features of the point-by-point determination with regard to the RFP was the fact that the system in its present configuration has not been activated for any two- way capability; including the status monitoring system, which would be helpful for system maintenance. In addition, there has been no construction of an institutional network. The Company advised us that the City is, in fact, aware of both of these items of non-compliance and that the City is comfortable with the Cable Company's current position, which is that the Company will 4 comply with both of these items when it seems economically and technologically appropriate. While we concur with the position of both the City and Company, we are concerned with a 'trigger mechanism• such as economic and/or technical feasibility, which is difficult to define. We would suggest that the Company and City attempt to arrive at a "trigger mechanism' that is more finite. The cable industry is about to experience intense competition from the telephone industry with regard to two-way interactive services. It, therefore, seems prudent for the Company to maintain a •wait and see" attitude with regard to these extra services, since it would be inappropriate to conduct a mass experiment which would place a financial burden on the existing subscribers. The system uses Zenith converters •exclusively, which are addressable. The Company appears to have done an excellent job with regard to the installation and operation of these converters. All converters are operated for a 24-hour period prior to being installed, and the addresses are individually set to minimize field errors and installation time. The Company said it is experiencing failures in the order of 10 to 20 units per day (other than catastrophic outages), which is well within the predicted reliability of the converter. The overall system appears to be in excellent condition, reflecting the latest in proven available technology as well as high level installation practices. 5 SECTION II. FCC COMPLIANCE TESTING & TECHNICAL EVALUATION The Company had just performed its FCC compliance testing in a fairly extensive report which is included as Appendix B to this report. A review of the data shows the system to be well within FCC requirements. Specific field measurements were verified by us in an effort to verify the accuracy of the test procedures. Three areas covered by us were: the composite triple beat measurement, the carrier to noise measurement, and the error rate for the Zenith converter. These are discussed separately in this report. The system consists of a central headend with two remote hub locations which are fed from the headend. The supertrunk from ( the headend to the hub is accomplished by two separate trunks. carrying the band from 300 to 450 MHz on one cable and 5 to 300 MHz on the other cable. At the hub location the signals are diplexed* together to form the full spectrum signal, and launched out in various directions from the hub. The purpose of this approach was to minimize the channel loading from the headend to the hub locations and, therefore, maintain a higher signal quality at the end of the system. The techniques used entail diplexing filters to combine the two supertrunk cables. This can result in signal distortion, particularly differential phase at channels near the cross-over point, which is approximately channel 36. *See Appendix C for further details 6 r "; Cooper Associates did not measure the differential phase and gain of channels located within the three channel slots above and below the cross-over point, but Cooper Associates recommends that such test be performed as part of the ongoing proof of performance of the supertrunk system. The split system used has the disadvantage that both trunks must be equalized and balanced to maintain the common output level at the end point where they are combined. Since the longest run in each trunk was 18 amplifiers, it amounts to really maintaining 36 amplifiers to keep a common level output at the hub locations. Current technology utilizes feed-forward amplifiers which can be operated at higher output levels with lower composite triple beat for supertrunk applications. These approaches were probably not ( available to the Company at the time of the design of the system, and the discussion here is in no way intended to reflect poor design on the part of the operator. Nevertheless, since there are over 800 amplifiers in the system, it may well be worth considering replacing the supertrunks with 36 feed-forward amplifiers to reduce system maintenance and level problems. This should be done in conjunction with the differential phase in gain measurements discussed, as well as long term stability measurements made at the combined output of the supertrunk locations. The Company has its own performance test documentation which far exceeds that required by the FCC. Cooper Associates attempted several tests which were beyond FCC scope in order to identify the level of system tolerance between signal to noise and composite triple beat, so that actual 7 measurements could indicate a benchmark for future performance and relative system degradation. With regard to composite triple beat, the first tests performed were on a standard trunk amplifier. The composite triple beat test was measured using a spectrum analyzer and two tones with one tone operating approximately 10 . dB below the other tone and at a spacing of 1.25 MHz frequency separation. Both tones were raised to the operating level where the 2 A-B intermodulation tone was 40 dB below the smaller tone. The observed results were +72 dBmv for -40 dB CTB. Attempts were made to correlate these measurements in a field cascade of amplifers but the results were masked by the launch amplifiers at the headend which were subsequently measured ( and found to have a +64 dBmv output capability at -40 dB CTB. The following calculations demonstrate that the initial launch amplifiers were contributing as much CTB to the system as a 21-amplifier cascade. Jerrold Amplifier: Jerrold spec - 31.5 dBmv @ 54 channel for -88 dB CTB +31.5 dBmv - Sys @ -88 dB CTB +17 dB = 10 LOG N (N - 54 channels) +24 dB - Syst @ 40 dB +72.5 dBmv - 2 Tone -40 dB Theoretical Level Measured -40 dB CTB Input Gain Output Jerrold Trunk +48 dBmv 24 +72 dBmv SA Launch Amp +44 dBmv 20 +64 dBmv 8 (1) CTB of SA Launch Amp - 40 + 2 (64 - 35) - 20 LOG (54) - 40 + 58 - 34 - 64 dB CTB (2) CTB of 21 Amp Cascade - 40 + 2 (72 - 30) - 20 LOG (54) - 20 (LOG) (21 Amp) 40 + 84 - 34 - 26 40 + 50 - 26 - 64 dB CTB Combined - 58 dB CTB The levels of the launch amplifiers should be reduced by a tinimum of 5 dB to correct this situation or if this is not possible, they should be replaced by regular trunk amplifiers, as ( this will increase the operating tolerance of the system by at least 3 dB. There was insufficient time to make additional field tests, but it would be very useful if the Company developed a two tone measuring technique for measuring the composite triple beat so that degradation in system performance can be measured as it occurs. The Company presently utilizes a spectrum analyzer to indicate that the beats are "greater than" a certain level down and this does indicate whether the system is 3 dB worse than any measurements that were made previously. In addition to composite triple beat, Cooper Associates evaluated signal to noise measurements on the system. For FCC 9 proof of performance and customer satisfaction, these measurements are made on an overall basis which includes satellite reception noise, modulator noise and system noise. From a system maintenance point of view, it is more important to monitor the carrier to noise of the system alone since this measurement in conjunction with composite triple beat determines the "operating window" for the system. Measurements were made using a 727 field strength meter with an 8 dB correction factor on an unmodulated channel at approximately 243 MHz utilizing a tunable pre-selector filter in front of the field strength meter. The measurements showed a noise pedestal of -62 dB at the headend which would be residual modulator noise and is within Scientific Atlanta's modulator spec of -60 dB for noise pedestal. ( Measurements were made through a 21 amplifier cascade and produced a result of -49 dB carrier to noise which is very close to theoretically predicted value. This means that the particular cascade under measurement was at its proper operating level. Other tests were performed at the headend to determine the noise immunity of the Zenith addressable system. A tunable inband interfering carrier was injected into the test channel and the addressability performed and decoding performance was measured by addressing the converter on and off and by noting whether or not the picture was being descrambled. The system showed excellent noise immunity (noise here is used to include composite triple beat or any interfering signal) under this test. The converter could be addressed on and off in the presence of an interfering carrier at any frequency 6 dB below the picture 10 carrier level which, incidentally, completely obliterated the picture. When the interfering carrier was reduced to 25 dB below picture carrier level, the converter also performed well except when the interfering signal was tuned to frequencies which were spaced at multiples of 125 Raz from the picture character. At these frequencies the converter would lose its decoding ability. This may be an important result in determining whether or not a harmonically related headend would help or hinder the data transmission ability of the system. A computer analysis should be done to determine what channels, if any, produce beats in other channels in multiples of 125 RHz. The Company advised us that other than catastrophic ( failures, they were experiencing 10 to 20 random disconnects per day which is a reasonable number for a system with 26,000 converters. In most cases the converter is simply readdressed to its previous state. There has been very little work done in the industry to measure error rate performance through a cable system for the various methods of transmission. Until devices are developed which perform these measurements, the cable system will continue to operate "in the blind" with regard to this parameter. The Zenith converter depends on a nickel-cadmium battery for its memory retention and when this battery fails, the subscriber loses his service level. It would be very useful to perform accelerated life tests on this battery to determine if there will be a problem in the future if the battery does not meet the 11 manufacturer's specifications of seven years. The end result would be a high incidence of converter failure, which would require replacement, when a simple change of the battery is all that would be required. • • 12 sn SECTION III. SUMMARY The foregoing discussions and recommendations are of the type that must be made when a true compliance audit is accomplished. However, it is for the franchising body to decide the materiality of the non-compliance items. The only major variations, in our opinion, with the RFP are the lack of an institutional network and the lack of two-way services. As previously discussed, the two-way service technology is so experimental and unproven that, in our opinion, the public would be best served by not bearing the cost of any experimental systems that might be tried. With regard to the institutional network, that is a matter between the municipality and the cable system operator. Again, if there is not sufficient economic justification for an institutional network, i.e. if it were not commercially self- sustaining, the basic cable subscribers would have to bear the economic burden for its operation. The existing system is a modern state-of-the-art cable television system. It is adequately staffed, maintained, and has a full complement of test equipment. We would recommend that the Company be requested to provide a brief narrative relative to its position regarding the economic and technical feasibility of both an institutional network and two-way cable. The Commission should solicit input from subscribers, potential users, and its members, so as to ascertain the public and governmental 13 perception of institutional and two-way services, so as to facilitate movement towards acquiring these services for the subscriber, if they are truly desired. • I '. . • • • 14 I �1 I Commission 4 ANALYSIS OF THE PENDING RATE INCREASE PROPOSAL O8 MINNESOTA CABLESYSTENS-SOUTHWEST August 9, 1983 • it PREPARED BY CTIC ASSOCIATES I800 North Kent Street Suite 1001 Arlington, Virginia 22209 (703) 528-6838 • ANALYSIS OF THE PENDING RATE INCREASE OF MINNESOTA CABLESYSTEMS-SOUTHWEST I. INTRODUCTION CTIC Associates has been hired by the Southwest Suburban Cable Commission to examine the rate increase request of Minnesota Cablesysteas-Southwest. Minnesota Cablesystems-Southwest (hereinafter referred to as MCS) is seeking rate increases for its Tier III basic service offering, its interactive service offering, its Zenith converter rental fees, its installation charges, its FM: service'rate, and additional outlet charges. These service charges are within the rate regulatory authority of local government. MCS has also recently increased the rates it charges for its pay service offerings. Our analysis of the rate increase request focuses on MCS's financial justification for these increases. We have reviewed Minnesota Cablesysteme- Southwest Rate Adjustment Proposal dated June 24, 1983. In addition, we have reviewed the original proposal of MCS to the city prior to the award of the franchise in order to compare how original expectations match with actual results. MCS has provided a very detailed and thorough presentation to support its rate increase request. We believe this presentation has provided sufficient information upon which to base a financial analysis of its rate increase request. The audited financial statements of the operator have been included to support its figures. 1-2 Accordingly, in the Franchise Agreement (Section VI 4 (DI) there are 13 criteria for justifying a rate increase. Our analysis examines several of the 13 criteria (listed below according to their subsection in the franchise agreement): a) Ability to Render System Services and Derive a Reasonable Profit • Therefrom Under Existing and Proposed Rate Schedules b) Revenues and Profits Derived from System Services c) Tax Benefits Received d) Cash flow Derived from System Services e) Original Cost of the System, Less Depreciation f) A Fair Rate of Return with Respect to Investments Raving Similar Risks to that of Providing Cable Communications Services g) Capital Expenditures by Guarantee in Providing Updated Technology and Services to Subscribers As is well defined in the franchise agreement, a thorough evaluation of a rate increase request examines not only financial considerations but also addresses operator compliance with the terms of the ordinance (criteria i and 1), efficiency of the operator (criteria e), quality of service (criteria f) and fairness of the increase to residents and subscribers (j). Our analysis does not specifically address these criteria since they require examination of areas which are most effectively and efficiently analyzed by the local au- thorities. This report is organized as follows: 1) Section II summarizes the op- erator's rate increase request and justification for the increase; 2) Section 1 I-3 III review the financial performance of the operator in the principal rate- gorier of revenues, expenses and capital expenditures and compares these. results with original expectations; and, 3) Section IV examines system profit- ability and how the rate increases will affect future financial performance. I, . II. SUMMARY OF PROPOSED RATE INCREASES AND MINNESOTA CABLESYSTEMS-SOUTHWEST'S JUSTIFICATION FOR THE RATE INCREASES Table 1 summarizes the proposed rate increases and the percent increase in the rates for the currently offered service. TABLE 1 SUMMARY OF RATE CHANCES • Current Proposed Percent Service Rate Rate Change Monthly Fees Tier 1 - - No change • Tier 2 (Including converter) $ 5.45 $ 5.45 Ma change Tier 3 a) Including set top con- $ 8.95 $10.50 17.3 percent verter b) Including remote con- $10.45 $12.00 14.8 percent • verter Tier 3 Interactive • (Including converter) $10.95 $13.50 23.3 percent FM $ 1.95 $ 2.50 28.2 percent Installation Fees Aerial drop $19.95 $24.95 25.1 percent Underground drop $34.95 $39.95 14.3 percent FM/Additional Outlet $10.00 $15.00 50.0 percent II-2 TABLE 1 (Continued) SUMMARY OP RATE CHANGES Current Proposed Percent Service Rate Rate Change Converter (Monthly) Oak Tier II $ 1.50 - No change Set Top Tier III with remote $ 3.00 $ 4.00 33.3 percent Set Top Tier III $ 4.50 $ 5.50 22.2 percent Enhanced Converter with lay Lock and Remote $ 5.00 $ 6.00 20 percent Additional Outlets Tier II (including con- verter) $ 3.45 $ 3.45 No change Tier III (including set top converter) $ 6.95 $ 8.95 28.8 percent Change of service $14.95 $19.95 33.4 percent Reconnect $14.95 $19.95 33.4 percent • MCS is proposing no change in the rates offered for its Tier 1 and Tier 2 service. Tier 1 will remain a no monthly charge service. The monthly charge for Tier 2 remains at $3.95 per month plus a $1.50 charge for renting the Oak converter. The Tier III basic service rate is proposed to increase from $5.95 per month to $6.50 per month or 9.2 percent. The Tier III converter rental fees are targeted to increase from $3.00 per month to $4.00 per month or 33 percent for the set top converter; from $4.50 per month to $5.50 per month or II-3 22 percent for the set top converter with remote control; and from $5.00 per month to $6.00 per month or 20 percent for the enhanced converter with a keylock and remote control. Since all Tier III subscribers require a converter, the combined impact of the monthly fee increase and converter rental fee increase for Tier III subscribers is 17.3 percent for Tier III subscribers selecting the set top model; 14.8 percent for Tier III subscribers selecting the covnerter with remote control; and 14.2 percent increase for those Tier III subscribers selecting the enhanced converter. Currently 99 percent of all subscirbers select Tier III services. Of those subscribers, 97 percent select the converter model with remote control. As such, most subscribers will experience a basic service rate increase from $10.45 per month to $12.00 per month or 14.8 percent. MCS is also proposing a rate increase of 23.3 percent for the interactive Tier III service. To date, this service is unavailable due to equipment dif- ficulties MCS is having with the two-way amplifiers required for providing this service. MCS is proposing a 25.1 percent increase in aerial installation fees and a 14.3 percent increase in underground installation fees. Currently 80 percent of plant has been aerial construction.' MCS is proposing a 28.2 percent increase in the FM service monthly charge; an increase from $1.95 per month to $2.50 per month. MCS has aot provided any data on the number of subscribers who would be affected by this proposed increase. Installation fees for FM service are proposed to increase from $10.00 to $15.00. • II-4 Changes for additional outlets are proposed for Tier III only. The monthly fee for the additional outlet of Tier III is $3.95 plus converter charge. The new rate would be $4.95 plus converter charge. Subscribers desiring an additional outlet of Tier III with the remote control converter would be paying $10.45 instead of $8.45 or 23.7 percent more. Instead of receiving a $2.00 per month discount off first set charges, these subscribers would be receiving a $1.55 per month discount off of first set charges. Currently approximately 13 percent of all subscribers appear to be selecting an additional outlet of cable service. MCS does not indicate which level of service subscribers select, but given the percentage of subscribers selecting a first set of Tier III (99Z), it is reasonable to assume that most of these additional outlet subscribers are on the Tier III level and most select the ( remote control covnerter. MCS has increased the installation fee for addi- tional outlets from $10.00 to $15.00. Finally, MCS proposed increases in change of service or upgrade charges from $14.95 to $19.95 or 33.4 percent. Reconnect charges for subscribers who have had service disconnected for some reason have increased from $14.95 to $19.95 also. In sum, the average subscriber (a Tier III subscriber with a remote control converter) will see his or her basic monthly charge increase close to 15 percent, from $10.45 per month to $12.00 per month in addition to any premium pay option selected. Premium pay options have recently increased in coat from $7.50 per month to $8.95 per month. (The Disney Channel and Spec- trum Sports Channel are slightly higher). II-S Currently the average basic subscirber selects 1.80 pay services. In other words for every basic subscirber there is 1.80 pay services selected. An effective way of examining the impact of the proposed rate increases is to approximate a monthly subscriber bill representing the average subscriber expenditure. Before After Increase Increase Basic Service Charge (Tier III with remote converter) $10.45 $12.00 Pay Service Option 7.50 X 1.80• 13.50 8.95 X 1.80 • 16.11 • Additional Outlet (Tier III with remote converter) 8.45 X .13 - 1.10 10.45 X .13 • 1.36 TOTAL $25.05 $29.47 As such, including the recent pay increase and proposed basic rate increases, the average subscriber can be estimated to expect a 17.6 percent increase in average monthly fees for services purchased. MCS's justification for the proposed rate increase focuses primarily on the following points: 1) Higher converter costs 2) Higher interest rates 3) More mileage than was originally expected 4) Lower market penetration rates 5) Increase in hardware and labor costs. These factors will be further addressed in the next section of this report. II-b All of these factors combined have led to a position where cumulative losses at the end of fiscal 1983 are projected to be $4.4 million (with or without the rate increase). MCS also indicates that in order to fund construc- tion, approximately $3.34 million in additional partnership equity capital was invested over the level of equity capital originally planned. MCS states that • the rate increase proposed will result in a $260,000 decline in projected losses for 1984 and a $530,000 decline in projected losses for 1985. MCS's projections show no expectations of profit over the next five years. The primary goal of the rate increase request appears to be to reduce projected losses and minimise the need for debt capital. • • III. FINANCIAL PERFORMANCE In this section we will compare how the actual and currently expected financial performance of the company compares with the original projections provided in its proposal prior to the award of the franchise. For the purposes of this analysis. we are assuming that the first year of MCS projections in its original proposal coincides with fiscal 1981. We are aware that there may be some descrepancies in terms of months covered in the first year of the projections. However, we do believe that the comparison is a useful tool. I A. REVENUES AND SUBSCRIBERSHIP Table 1 presents a comparison of actual and currently projected levels of subscribership with originally forecasted levels of subscribership. In its original forecast, MCS assumed that revenues would be achieved during the first year of operation. In fact, while system construction began in early 1981, the first subscriber was not served until December of 1981, part of fiscal 1982. The level of basic service subscribership expected for . 1983 is about 5 percent higher than originally forecasted. However, this represents a lower overall penetration rate since the number of households passed by cable is greater than originally estimated. More notable is MCS more conservative attitude toward future subscriber growth. MCS expects a 15 percent growth in subscribership between 1983 and 1984 compared with a 28 III-2 percent increase originally forecasted. An eight percent increase in sub- scribership is now forecast between 1984 and 1985 compared with an 12 percent increase originally forecast. MCS comments in its presentation that inability to gain access to a large number of apartment buildings is a major reason for these lower subscriber expectations. Pay subscription has proven to be much higher than originally forecasted by HCS. In its original projections, MCS assumed the average subscriber would select 1.19 pay services. Actual results show that the average subscriber is selecting close to two pay services each. Levels of pay units purchase are close to 57 percent higher than originally forecast for 1983. TABLE 1 SUBSCRIBERSBIP Current Results and Revised Projections Original Forecasts 1981 1982 1983 1984 1985 1981 1982 1983 1984 1985 1) Basic Subscribers - 13434 26360 30300 32826 2908 12938 25206 32221 36023 2) Basic Penetration - 42 45 50 52 40 45 50 55 60 3) Pay Service Units - 28891 46979 53454 58500 3461 15389 29969 38334 42877 4) Pay Service to Basic Subscriber Ratio - 2.15 1.78 1.76 1.78 1.19 1.19 1.19 1.19 1.19 Table 2 presents comparison of actual and currently project levels of revenue with originally forecasted levels of revenue. MCS original projections assumed basic service rate increases equal to 5 percent per year in 1984 and 1985. • III-3 Despite the less optimistic subscriber forecasts for 1984 and 1985. total revenues forecasted (with or without the proposed rate increases) are actually higher. MCS earned no revenue in 1981 compared with its original estimate $427.000. In addition, revenues earned in 1982 are less than half of what was originally forecasted for 1982. This is because fiscal 1982 was the first year of actual marketing and subscribership. However, beginning in 1983 the revenue outlook is higher than originally forecasted. Fiscal 1983 revenues are expected to be 9 percent higher than originally assumed. Without the pro— jected rate increase. 1984 revenues are expected to be 29 percent higher than originally forecasted and 1985 revenues are now forecasted to be 24 percent higher than originally estimated. With the increase, projected revenues would be 33 percent and 30 percent higher for 1984 and 1985 respectively. TABLE 2 REVENUES $000s Current Results and Revised Projections Original Forecasts 1981 1982 1983 1984 1985 1981 1982 1983 1984 1985 1) Basic Subscribers (including add'1 outlet and conver— ter rental) — 562 2923 3912a 4282a 153 1370 2668 3585 4205 4208b 4857b 3407 3784 2) Pay Service — 864 3528 6275 7243 138 1330 2591 3480 4087 3) Installation — 45 64 207a 225a 78 209 215 281 320 221b 256b 4) Other — 14 20 20 20 29 222 516 736 909 TOTAL — 1485 6535 10415a 11770* 427* 3131 5990 8087 9521 10724b 12376b a. Without increase b. With increase *Total presented in the original proposal do not match sus of individual items for year 1. III-4 The reasons for these higher levels of revenues can be partially at— tributed to the fact that 99 percent of subscribers are selecting the top tier of basic service. Original projections showed only 75 percent of subscribers at the top tier of service. Average monthly basic service revenue per sub— scriber was $9.24 in 1983. Original forecasts showed a monthly basic revenue • of $8.82. In addition the higher level of pay service subscription results in pay service revenues for 1983 which are 36 percent higher than originally forecasted. Total projected pay service revenues for 1984 and 1985 are 79 percent higher than originally estimated. Certain categories of revenues have fallen below original expectations. Revenues from installations are considerably lower than originally estimated, especially over the first few years of operation. Part of this lower level of revenue may be attributable to the fact that HCS has offered longer free installation periods to subscribers in new service areas; from the originally estimated 30 days to 60 and even 120 days. In addition, in its original proposal, HCS assumed substantial revenue from interactive servcices and institutional network services. Since neither interactive or institutional network services are available, no revenue is derived therefrom. In its original proposal, HCS assumed $482,200 in average annual revenues from those services over the first five years. Currently HCS projects only $20 thousand per year from other sources. We are somewhat surprised that HCS is not earning more income from the sale of advertising time not only on the locally originated channels but from "spots" available on some of the satellite services such as ESPN. We would expect to see HCS earning at least $60 thousand per year from this source. • • III-5 Cumulative revenues through 1985 would total $30.2 million without the rate increase and $31.1 million with the rate increase. Cumulative revenue as original forecast through 1985 was $27.2 million. In terms of total revenue. KCS is in a better position over the next few years than originally forecasted • even without the rate increase. However. over the first two years of opera- ' tion (1981 and 1982) total revenue was considerably below expectations. The proposed rate increase would yield an additional $900 thousand in revenues for KCS over the next two years. B. OPERATING EXPENSES The following cable shows how operating expenses compare with original forecasts for 1983 and 1985: $000's Current Original Projections Forecasts 1983 1984 1983 1984 Plant 1494 1845 804 1199 Programming 2077 4317 1831 2704 GS6A 2397 3264 1472 2126 TOTAL 5968 9426 4107 6029 MCS's rate proposal does not provide much explanation as to why operating expenses are so much higher than originally forecasted. Examining their break- out of operating expenses reveals higher costs in most every category. Two • III-6 principal causes for the higher costs can be related to pay cable expense and higher salary expense. In addition MCS is maintaining 745 miles of plant compared to the 690 miles originally estimated. In !ICS's 1983 budget, salaries constitute the largest expense by far. In 1983, MCS expects to pay $2.4 million for salaries and personnel related ex- • penses. Overall, MCS's expenses appear similar to industry averages for new systems and reflect substantial support for local programming. MCS does re- port a fairly high level of bad debt expense for 1983, at close to 3 percent of total revenues. Typically bad debt expenses averages between 1 and 2 percent of total revenues. Five percent of gross revenues goes to Minnesota Cablesystems, Inc., the general partner as a management fee. In 1983, this amount will equal $355 4. thousand. The following table companies the originally forecasted operating margin (revenue less expenses) with the currently forecasted operating margins for 1981 through 1985. Currently Originally Forecasted Forecasted 1981 - (1360) 1982 (303) (106) 1983 567 1329 1984 2141a/2404b 2415 1985 2417a/2950b 3026 Cumulative 4822a/5618b 5304 a. Without rate increase b. With rate increase III-7 In its original forecasts, MCS did expect negative operating income over the first two years of operation. In addition, MCS did not expect to be in a position of positive cumulative operating income until 1984. By the end of 1983, MCS will be in a position of positive cumulative operating income. By the end of 1985, cumulative operating Income without the increase would be 10 . percent below original forcasts and with the increase would be about 6 percent higher than the original forecasts. C. CAPITAL EXPENDITURE One of the principal justifications used by MCS for its proposed rate increase is higher capital costs. At the end of 1982. MCS had invested $18 million to construct the system. Mother $5 million is planned for 1983 for a total of $23 million. Original forecasts showed cumulative capital expen— diture at the end of the third year at $18.6 million. MCS states that by the end of fiscal 1985, a total of $27.6 million will be invested. The original forecast for the first five years estimated $20.1 million. These higher costs can be attributed to: 1) More plant miles than were originally forecasted; 2) higher per mile construction costs; 3) higher converter costs; and • 4) design changes. MCS's original proposal assumed 690 miles of plant of which 624 miles would be aerial plant and 66 miles would be underground construction. MCS I I11-8 states that during construction, it was discovered that there were actually more miles to be built than was originally indicated in the instructions to the applicants. By the end of fiscal 1983, MCS will have constructed 595 miles of aerial plant and 150 miles of underground plant for a total of 745 miles. While aerial mileage is actually lees than forecasted, underground • plant is much more expensive to build than aerial plant - often 2 to 3 times more expensive. The average costs per mile of plant in the orignal proposal was estimated to be around $13,000. To date, the average per mile cost of new plant construction in the MCS system has been $17,830, close to 39 percent higher. In addition, MCS plans to construct another 50 miles of plant over the next two years, thirty of which would be underground plant. Mother principal cause for higher costa has been related to converters. In its original proposal, MCS had planned to use the Scientific Atlanta Descrambler-Converter with an estimated $70 per unit cost. Because the Scientific Atlanta Converter was not available at the time of construction, MCS decided to use the Zenith Z-TAC addressable converter which costs around $150 per unit. The Z-TAC unit is highly regarded for its reliability and is one of the most popularly proposed converters in recent franchising efforts. As MCS states, it could have chosen a lees expensive, less sophisticated model. However, the Z-TAC does allow for many operator benefits in terms of tier security and reducing the risk of signal theft. The decision to use the Z-TAC has meant an additional $3.1 million in capital spending. Because almost all subscribers require the Z-TAC since they select Tier III, MCS is III-9 investing more on converters for the top tier of service than was originally estimated. Because of the decision to use Z-TACK additional capital was required to upgrade the headend equipment to use Zenith suppression equipment rather than Scientific Atlanta equipment. • TICS states that higher headend cost can also be attributed to the addi- tion of one earth station above the original plan of 2 earth stations. This allows for greater diversity of satellite signal choice. All of these factors combined have resulted in much higher capital investment than was originally planned. We believe NCS has provided ample support for the concept that this added cost was necessary and beneficial to the system and its subscribers. D. FINANCING PLAN AND RELATED COSTS There has been substantial changes in NCS financing plan. These changes can be best summarised in the following table. $000's Original Proposal Actual & Projected Equity Debt Equity Debt 1981 4982 5100 4990 - 1982 374 9400 4010 9500 1983 (180) 2800 - 6000 1984 254 400 - 1500 1985 230 300 - 1000 TOTAL 5660 18000 9000 18000 • III-10 MCS has arranged long-term financing with two banks for the amount of $18 million. Its original plan was to draw down most of this financing over the first two years. Since HCS's financing costs are tied to the prime rate, the decision to delay draw down until year 2 was probably based on the high interest rates experienced in 1981 and most of 1982. Instead of using the debt capital in 1981 and most of 1982, MCS chose to make a substantial additional equity investment in 1982. Originally, the partnership planned to invest $4.982.000 in 1981 and an additional $678.000 over the next four years. Instead, the partnership invested $4,990.000 in 1981 and another $4,010,000 in 1982. No additional equity capital investment is planned in the near future. In 1982. MCS borrowed $9.5 million against the line of credit. An addi- tional $6 million is scheduled for 1983. An additional $1.5 million will be borrowed in 1984 and $1.0 million additional debt is scheduled for 1985. The total amount of debt financing planned ($18 million) is the same as originally scheduled. An additional $3.34 million in equity capital has been made. As of August 31, 1982, the capital contributions of the partners have been as follows: Minnesota Cableaystems. Inc. - $7.302,500 - 811 Limited Partners - 1,697.500 - 191 Due to the purchase of certain limited partner shares in 1982, Minnesota Cablesysteme, Inc. now hold 82.181 interest in the limited partnership. According to the partnership agreement, losses, profits and tax benefits are distributed between the general and limited partner according to the percent III-11 of interest held by each. As of August 31, 1982, Minnesota Cablesystems. Inc. had been allocated $4,114,849 in taxable losses and $1,221,679 in investment tax credits. The limited partners have been allocated $1,041,229 in taxable losses and $307,413 in investment tax credits. Interest expense associated with the debt capital began to accrue in 1982. Total interest in 1982 was $772,605 of which $491,993 wee capitalized. Interest expense for 1983 is projected to be $2.083 million, averaging approxi— mately 13.4 percent on the outstanding debt of $15.5 million for 1983. Pro- jected interest expense for 1984 is $2.415 million, average 14.2 percent of outstanding debt (projected at $17 million). Interest expense for 1985 is • projected to be $2.307 million or about 13 percent. Interest expense is obviously difficult to predict given the substantial fluctuations in the prime rate over the past few years. Over the past year, MCS should not have paid much more than 12.5 percent on its outstanding balances. Assuming the prime rate does not flucuate much above 11.5 percent (it is currently at 11 percent) MCS should not be paying higher interest cost than it originally forecasted. In fact, MCS has not to date paid as much interest as it originally estimated. Projected levels of interest expense are only slightly above levels originally forecasted. Principal repayment on debt capital is projected to begin in 1986. Prin— cipal repayments amount to $1,000,000 in 1986; $1,500,000 in 1987; $2,000.000 in 1988; $3,000,000 in 1989; $5,000,000 in 1990; and, $5,500.000 in 1991. Assuming the interest rate does not increase substantially over the next few years, interest expense should begin to decline in 1986. III-12 E. SUMMARY • Current levels of total revenue and forecasted levels of revenue with or without the rate increase compare favorably with original estimates. This is inspite of less optimistic expectations for subscriber growth in the near • future. Revenues have been higher than originally forecasted because a greater percentage of the subscriber base selects the most expensive tier option and because more pay services are being purchased than originally estimated. Operating expenses are substantially higher than originally estimated. This can probably be attributed to a combination of larger plant size, infla— tion, higher pay cable expenses and original underestimation of personnel costs. The combination of somewhat higher revenues and substantially higher operating expenses has meant that operating income over the first three years of operation is low. However, original forecasts show a cumulative negative operating income at the end of 1983. Current results show a postive operating income. Fore— casts for operating income over 1984 and 1985 would be below original fore— casts without the rate increase and slightly above original forecasts with the increase. Higher capital costs are a principal justification for the rate increase. By the end of 1983. MCS will have invested $4.4 million more than it originally planned. By the end of 1985, MCS will be $7.5 million over the projected in— vestment. The higher capital costs have been substantiated by MCS as neces— sary and beneficial to subscribers and are primarily atributable to more plant • • • • III-13 ailes than originally estimated, higher construction costs. higher converter costs, and necessary design changes. The additional capital costs have required a higher level of equity • capital investment. Originally the partners planned to invest $5.660 million. • To date $9 million has been invested. The amount of debt financing has not been changed; it remains projected at $18 million. However, NCS had delayed drawing down its debt capital until 1982, saving considerable interest expense in 1981 and 1982. Total interest expense paid to date is less than origi- nally estimated. Assuming the prime rate does not fluctuate much higher than 11.5 percent over the next few years, interest expense should remain similar 'to levels originally forecasted. Overall, the rate increase will improve cash flow by around $900,000 over • the next two years and assist the operation in beginning debt service scheduled for 1986. IV. SYSTEM PROFITABILITY The following table compares net income with and without the rate in— crease and with the original projections. NET INCOME $000's Actual & Projected With Without Increase Increase Original Proposal 1981 — — (2161) 1982 (1056) (1056) (2692) 1983 (3391) (3391) (2690) 1984 (2049) (2395) (1856) 1985 (1516) (2132) (1350) Cumulative (8012) (8974) (10749) The MCS operation reports no loss for 1981 because it incurred no reve— nues and all expense were capitalized. As is evidenced, MCS expected to be operating with a cumulative net loss at this point in time in its operation. While this position appears very critical, in fact it is the "norm" for cable operations. Most cable system experience substantial losses in early years. Positive cash flow is usually not experience until the third or fourth year of operation and postive net income may not be experienced until the sixth or seventh year. These situations are not completely remedied by rate increase since system profitability is as much &function of reaching a mature level of IV-2 subscriber participation and completion of construction expense as rates charged. In addition, because of large debt requirements, interest expense in the early years is often the largest expense item. As debt capital is repaid, system profitability should greatly improve. This system should achieve postive cashflow with or without a rate ' increase by 1985. The rate increase would definitely improve the cashflow situation and perhaps hasten repayment of long-term debt therefore lowering interest costs. Because MCS is a limited partnership, system profitability should not be measured simply as positive net income. A cable television system offers its investors substantial tax savings through allocation of system losses and investment tax credits. Even though the system is operating at a substantial loss, its investors are earning a return through tax benefits. On page 71 (Schedule 8) of its rate increase proposal, MCS provides the tax implications to its limited partners and provides a calculation of return on investment. We believe this presentation is misleading in that it does not assume the value of the limited partnership interest itself and measures only the net cash gain over the original investment. Any internal rate of return calculation of this type must assume a value of the asset at the end of the cashflow period'. For the sake of this example we assume that the limited partners will sell their interest at the end of the fifth year. We use a conservative market valuation of $800 per subscirber less outstanding indebtedness. Many systems are sold for as much as $1000 per subscriber. An $800 per subscriber valuation would result in a market value IV-3 • of $26 million. Removing outstanding indebtedness, which would be $18 mil— lion in debt at the end of 1985, would leave a valuation of $8 million. The • general partners value would be $6.576 million and the limited partners valuation would be $1.424 million. The internal rate of return calculation, assuming a 50 percent tax rate and full utilization, for both the no rate increase and rate increase assumptions would be as follows: Limited Partner Cash Plow and Internal Rate of Return $000'. (61) Cash Flow Present Value No Rate Adjustment Investment 1604 1604 ( 1981 Tax Savings (201) 63 59 1982 Tax Savings 765 681 1983 Tax Savings 377 317 1984 Tax Savings 252 200 1985 Tax Savings 198 148 Market Value (1986) 1424 982 Internal Rate of Return 10.61 (61) Cash Flow Present Value Rate Adjustment Investment 1604 1604 1981 Tax Savings (201) 63 59 1982 Tax Savings 765 681 1983 Tax Savings 377 317 IV-4 Limited Partner Cash Flow and Internal Rate of Return $000's (Continued) (6Z) Cash Flow Present Value Rate Adjustment (Continued) 1984 Tax Savings 229 181 1985 Tax Savings 151 113 Market Value 1424 982 Internal Rate of Return 10.OZ As is evidenced, the limited partners return on investment would average around 10 to 11 percent over the five year period assuming they sold their interest at a very conservative valuation. A $1000 per subscriber valuation less outstanding indebtedness given the same cash flow projections would yield limited partner investors an 18.6 percent internal rate of return over the same period. The rate of return to the general partner can also be estimated using this approach. However, MCS has indicated that the general.partner'v parent company, Rogers Cablesystems, Inc., cannot presently utilize the tax savings flowing from the MCS system for several years because it has several cable systems under construction and also operating at a loss. Since we have not reviewed the operating information on the other Roger's operations we cannot estimate when these tax savings could be utilized. Of course, these is a firm limit on how long a company can hold onto these tax savings. Unused invest- ment tax credits can be carried forward,for 15 years. Unused taxable losses Iv-5 can be carried forward for seven years. If the general partner were able to use all tax savings in 1986, given the same assumptions concerning market valuation at $800 per subscriber, it would acheive an internal rate of return as follows: General Partner • Cash Flow and Internal Rate of Return $000's (62) Tax Savings Cash Flow Present Value Used No Rate Adjustment Investment 7398 7398 1981 Tax Savings (20%) 252 237 1982 Tax Savings 3060 2723 1983 Tax Savings 1508 1267 1984 Tax Savings 1008 '798 1985 Tax Savings 792 562 1986 Present Value of 4585 Accumulated Tax Benefits Discounted Market Value 4415 of Interest in Partnership 9000 Total Cash Flow 3.3x Internal Rate of Return • As is evidenced, the inability of the parent company to use the tax savings for several years seriously diminishes the rate of return to that partner. Mother profitability measure used is return on net investment. This relates return to both debt and equity capital to the value of assets they created. It relates net income plus interest (the return of debt capital) IV-6 to the book value of assets. Without the rate increase, the MCS operation shows a negative rate of return of (9Z) on fixed assets between 1982 and 1985. With the rate increase, an average rate of return on fixed assets is negative (52). It will take several years for this system to achieve a positive and ' reasonable rate of return on fixed assets. Overall, we can conclude that the system offers profitability at this time only to the limited partners who can fully benefit from the tax savings of the losses and investment tax credits. The proposed rate increase will not immediately have any substantial effect on system profitability. The princi- �- - pal benefit of the rate increase will be to hasten positive cash flow in order to ensure that debt service or principal repayment can begin on schedule in ram: 1986. } V. CONCLUSIONS Overall, we believe MCS has presented a strong argument for the proposed rate increase. Its proposal is detailed and its facts have been substantiated • with audited statements. We estimate that the proposed increase (outlined in Section II) will cause an increase of 17.6 percent on the average subscriber's bill of ser- vices. This may appear contrary to MCS's claim of 9 percent. However. MCS considered only the 55 cent increase in Tier III charges in that percentage. In its proposal. MCS alludes to the need for another rate increase in the near • • • future (see page 46 of proposal). We do question whether subscribers will accept two such substantial rate increase in close proximity. We believe the currently proposed rate increase is justifiable and merited. It will not bring net income up to a positive level but should help diminish the current working capital deficiency and allow the company to more comfortably begin debt service scheduled for 1986. The level of earnings currently experience is not substantially worse than originally forcasted. However, because of the larger capital investment, the revenue requirement needs to be higher for any given level of return to be achieved. Only the limited partners appear to be achieving a positive return due to their ability to utilize the tax benefits from operational losses and investment tax credits. • • SOUTHWEST SUBURBAN CABLE COMMISSION RATE INCREASE RECOMMENDATIONS PERCENT RECOMMENDED MONTHLY FEE PRESENT PROPOSED INCREASE RATE Tier I Free Same 0% Free Tier II $ 3.95* Same* 0% $ 3.95 Tier III 5.95* $ 6.50* 9% 6.50 Tier III Interactive 10.95** 13.50** 23% 13.50 F.M. 1.95 2.50 28% 2.50 INSTALLATION FEE Aerial $19.95 $24.95 25% $ 24.95 Underground 34.95 39.95 14% 39.95 F.M. or Additional Outlets 10.00 15.00 50% 15.00 CONVERTER Oak Converter; for Tier II $ 1.50 Same 0% $ 1.50 Set top converter 3.00 4.00 33% 4.00 Converter with Remote Control, remote volume 4.50 5.50 22% 5.50 _ Enhanced Converter with keylock rental Control, Mute, and '.avorite Channel and Remote Unit 5.00 6.00 20% $ 6.00 ADDITIONAL OUTLETS Tier II $ 1.95* Same* 0% $ 1.95 Tier III 3.95* 4.95* 25% 4.95 Change of Service (Upgrade) 14.95 19.95 33% 19.95 Reconnect Charge 14.95 19.95 33% 19.95 PERCENT PREMIUM SERVICES (Not Regulated) ORIGINAL PRESENT INCREASE HBO $ 7.50 $ 8.95 19% N.R. Cinemax 7.50 8.95 19% N.R. Showtime 7.50 8.95 19% N.R. The Movie Channel 7.50 8.95 19% N.R. Bravo 7.50 8.95 19% N.R. Home Theater Network 3.95 N.A. - N.R. The Entertainment Channel N.P. N.A. - N.R. The Disney Channel N.P. 8.95 - N.R. Spectrum Sports N.P. 9.95 - N.R. Premier 7.50 N.A. - N.R. HTN plus N.P. 8.95 - N.R. * Plus Converter ** Including Converter N.P. Not in original franchise proposal N.A. Not available now, deleted from program offering N.R. Not Regulated